Canadian exports rose 1.8 per cent to $39.8 billion in August as prices and volumes posted healthy gains. The increase offsets a decline in July, and leaves exports up 6.1 per cent compared to August of last year.
Energy and metals drove monthly increases… but forestry holds on to top spot for 2013
The gains were widely shared, but the top performer was undoubtedly metals which surged by 8.2 per cent, driven by huge increases in iron shipments and other metal ores. Energy gained 4.7 per cent for the month as crude exports rose 4.4 per cent and refined petroleum was up 9.3 per cent.
Impressively, Canada’s machinery and equipment exports reversed several months of weakness to rise 4.2 per cent due to strength in the construction and agricultural equipment sectors. Despite some slippage in August, forestry holds onto top spot for the full year, up 9.3 per cent. Six of eleven major export categories recorded growth on the month.
Exports to the U.S. and Emerging Markets continue to climb, but sales to the U.K. plunged
Canada’s shipments to the U.S. rose 1.9 per cent as the American economy continued its upward climb, while sales to Emerging Market advanced 3.1 per cent. Shipments to Japan and the EU were essentially flat, and the U.K. recorded at 19 per cent decline. Europe and Japan will be watched closely in the months ahead as their better than expected growth this year could lead to surprising gains for Canadian trade. The U.S. remains the top performing market on the year but export sales for September and October may be dampened by nervousness over the government shutdown and the debt ceiling.
This report is reprinted with permission from EDC. It is a compilation of publicly available information and is not intended to provide specific advice and should not be relied on as such. No action or decisions should be taken without independent research and professional advice. EDC is not liable whatsoever for any loss or damage caused by or resulting from any inaccuracies, errors or omissions in such information.