Canada Trade Deficit Falls

The Canadian trade account recorded a deficit of C$3.04 billion ($2.45 billion) for July following a revised C$3.76 billion shortfall for June. Consensus forecasts were for a deficit of around C$3.1 billion for the month, CBC reported. Total exports declined 4.9% for the month to C$44.1 billion with declines in 9 of the 11 sub-sectors. The primary impact was from lower prices as the Canadian dollar strengthened sharply, although volumes also declined 1.1% on the month. There was still 2.2% year-on-year growth in exports. Energy imports declined 3.7% on the month, although there was still a 24.3% annual increase. Imports fell 6.0% on the month to C$47.2 billion with declines across all sectors.