Canadian exports increased to $39.6 billion in June as export volumes grew by 2 per cent, more than off-setting a 0.6 per cent slump in prices. After outright declines in April and May, the turn-around is a welcome relief.

Transportation and precious metals lead the charge….

The star performer in June was the aerospace industry which reversed two months of decline to post a 28.3 per cent rise, mainly on rising aircraft exports. A stellar 5.5 per cent surge in Canadian auto exports came about almost entirely because of passenger vehicle sales which were up 8.4 per cent. This was driven by U.S. auto sales which were up 9 per cent year-over-year in June and even better news is likely to come in the months ahead with auto sales rising a futher 13.9 per cent in July. The other strong performer was the metals sector which soared by 11.6 per cent because of a 26 per cent gain in precious metals.

Exports to the U.S. continue to surge, but emerging markets still the fastest growing

Canada’s exports to the U.S. rose by 1.5 per cent in June, broadly in line with overall exports. Leading indicators such as industrial production and consumer confidence point to a U.S. economy that is accelerating in the second half of 2013, so we will be looking continued strength in the months ahead. Soft commodity prices hampered exports to emerging markets recently, but overall shipments to China are up 10 per cent so far this year, while sales to India have increased 32 per cent. Canadian exporters will continue to benefit from the diversification into the fastest growing parts of the global economy.

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.