Canada's exports advanced 6.3% in June, following five months of declines; the rebound in exports was the biggest monthly rise since December 2006, led by a robust 4.8% gain in volumes for a new peak. Imports slipped 0.6% with seven of 11 categories registering declines. On a year-to-date basis, the overall 1.8% decline continued to mask the fact that most categories remain markedly above last year's pace. The merchandise trade deficit narrowed significantly, from $3.4 billion in May to $476 million in June.
 
June exports increased in nine of 11 broad categories led by large gains in consumer goods, metals and forestry products, lifted by the continued strengthening of demand fundamentals, followed by agri-food, machinery and equipment, electronic products, energy, and industrial products. Exports of automotive products were only slightly lower by 0.6% although year-to-date exports remained strong, lifted by buoyant US demand and support from the weaker Canadian dollar. On the downside, only the volatile aircraft product exports were weaker.
 
Foreign demand for Canadian exports was broadly strong in June, supported by robust US demand (up 7.1%), a weaker Canadian dollar and the removal of the drag from the West Coast port strikes. Ontario exports were solid for the month, as the province is a key beneficiary of the fundamental drivers of export growth.

The full report is available on the EDC website.