The Canadian trade balance registered a slim $55-million deficit in June, down from a $1.0-billion deficit in May. Exports rose $0.7 billion or 2.3%, driven by energy products (+$0.8 billion) and industrial goods and materials (+$0.4 billion). This was partially offset by declines in machinery and equipment and automotive products.
Imports sagged $0.4 billion, owing mostly to machinery and equipment (-$0.5 billion) and industrial goods and materials (-$0.3 billion). In real terms, the trade deficit shrank $0.5 billion to $4.5 billion thanks to an 11% increase in energy exports.
Manufacturing shipments outdid expectations in June with a 1.9% rise, 80% of which was due to the aerospace products sector, where sales rebounded (+61%) from an abnormally low level the previous month. The record surge on the month of 20.5% in the volume of new orders was particularly impressive.