Tuesday, April 20, 2004

Big rebound in exports

Canada’s exports rebounded sharply in February following one of the weakest performances in January in nearly five years.

With strong automotive shipments to the United States leading the way,exporters shipped out $34.1 billion in merchandise, up 7.0% from January. This was the strongest gain in almost 10 years.

Imports hit $28.4 billion, up 6.1%, thanks to a surge in machinery and equipment.

As a result, Canada’s trade surplus in goods jumped by more than $600 million to $5.7 billion.

Exports to the United States, which accounted for four-fifths of the total, rose 7.0% in February, while imports from south of the border were up 5.8%. Canada’s trade surplus with the United States soared to just under $8 billion.

Import and export prices rose only slightly in February, indicating that most of the growth was real or volume-related.

Uncertainty in auto sector

International merchandise trade has been volatile recently, the result in large part of uncertainty in the automotive industry. A $350-million surge in truck exports, combined with modest gains in cars and motor vehicle parts, led February’s export growth.

Automotive reports indicated strong sales for certain vehicles, in contrast to the lacklustre performance of the industry over the last few months.

All import sectors rebounded in February. Nearly half of the total increase resulted from the best month since August 1993 for imports of machinery and equipment. Aircraft and parts, industrial machinery, televisions and other electronic equipment all contributed to the surge.

For more information, contact Matthew MacDonald (613-951-8551), International Trade Division.

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© 2004, Statistics Canada.