Canada's monthly trade deficit shrinks in June to smallest since January 2017

06 August, 2018, 02:05 | Author: Mary Valdez
  • Could the Trade War Backfire

Exports jumped 4.1 per cent, their biggest one-month increase since November, 2016, to a record $50.7-billion, while imports dipped 0.2 per cent.

Meanwhile, the deficit declined with Japan but that came amid an overall decline in trade between the world's largest and third-largest economies.

The June figures capped an otherwise positive quarter for US trade, as a narrowing of the deficit contributed the most to economic growth since 2013.

The median estimate of economists surveyed by Bloomberg called for a June trade deficit of $46.5 billion.

In June, the United States posted a surplus of $22.5 billion in the trade of services such as banking and education.

At the same time, trade spats have seen the United States and Canada impose tariffs on some products that cross the border.

As the numbers were released, Beijing warned it was ready to impose new tariffs on $60 billion in American products if Trump pressed ahead with plans to hit another $200 billion in Chinese goods with steep punitive duties. Afterward, they tend to look for alternative suppliers.

The data underscored the importance to Canada of the United States, which took 73.0 percent of all Canadian goods exports in June. Earlier in the year, the USA had been increasing imports of both groups of metals.

Manchester United's move for Barcelona's Yerry Mina cancelled
Manchester United target Toby Alderweireld is unlikely to remain at Tottenham Hotspur , reporter Michael Bridge has claimed . With the two Premier League clubs having rescinded their offers, it now leaves Mina with no suitors at the current time.

Iran to conduct 'swarm' drills in the Persian Gulf soon
"We are aware of the increase in Iranian naval operations within the Arabian (sic) Gulf, Strait of Hormuz and Gulf of Oman. Tensions between the two nations increased after the U.S. withdrew from the Iran nuclear deal in May.

Europe's heat record could be broken in Spain and Portugal
Spain could beat its record of 47.3ºC set previous year , and Portugal could go past its 47.4ºC record set in 2003. The U.K.'s Met Office weather service says July was the country's third-warmest month in more than a century.

"Exports will rise over the quarter, but strong domestic demand growth will lift imports more rapidly", he said in a client note. "The narrowing to the smallest deficit since January 2017 was in large part due a surge in exports to an alltime high".

Soybean exports remained strong in June.

In the second quarter, the USA economy grew at an annualized rate of 4.1%, the fastest pace of growth since 2014. Energy exports were up 7.1 per cent month over month, while energy imports were down 15.1 per cent.

The result could weigh on revised calculations of second quarter growth, which President Donald Trump hailed as a key achievement of his economic policies last week after it was reported as the strongest GDP increase in almost four years.

There is little to suggest that will change soon.

Rising demand by USA households and businesses is expected to keep supporting purchases of foreign-made goods in coming months.

The Canadian dollar was little changed at C$1.3001, or 76.92 US cents. A weaker Canadian dollar in the month was a contributing factor. "We expect the trade deficit to continue to widen, as a fiscal stimulus-led boost to demand leads to higher imports". Economic growth is on track for a 3 per cent annualized pace in the second quarter, and the trade data bolsters the case for another central bank rate increase by October, he said.

Recommended:



Popular

Loris Karius to continue as Liverpool’s No.1
Brazil goalkeeper Alisson kept a clean sheet yesterday on his Liverpool debut in a 5-0 demolition of Carlo Ancelotti's Napoli in Dublin.

Waratahs go down fighting against Lions in Super Rugby semi
As if the strength of the Crusaders was not enough, the statistics are also not in favour of the Hurricanes. Lions captain Warren Whitely was keenly aware of the enormity of the task.

Jason Day, Tiger Woods locked in WGC duel
He s won here as many times as I ve won everywhere in my career. "I'm definitely going to miss that". Woods is playing the opening rounds of this tournament with a two-time victor this season, Jason Day.

Trump Administration Looks To Remove California's National Sway Over Vehicle Emissions
Transportation is the only sector where greenhouse gas emissions went up in 2016, the most recent data available. Transportation experts question the reasoning behind the proposal.

Chelsea ready to offer bumper wage hikes to keep star players
The French midfielder's future continues to be the source of much speculation following reports of a bust-up with Jose Mourinho . Shrewsbury have put a £1m valuation on Congolese defender Toto Nsiala after rejecting a bid for the 26-year-old from Ipswich .

New Zealand Prime Minister Jacinda Ardern returns to work after maternity leave
But we're really lucky that Jacinda's got a lovely big office on the ninth floor with its own bathroom. Her return to leadership has spawned countless interviews with the New Zealand press.

Ohio State Coach Knew of Domestic Abuse Allegations Against a Staff Member
Meyer said in a statement he and athletic director Gene Smith agreed that his being on leave was best for the investigation . More detailed information was released regarding how Meyer handled the past allegations regarding Smith.

Judge speaks out after ordering man's mouth taped shut during sentencing
As Williams was in contempt of court, Russo was well within his legal rights to order Williams to be gagged in the courtroom. According to Metro News , Williams continued to protest, saying: 'But you're not letting me tell you what's going on.

First woman in Denmark fined for wearing full-face veil
Those caught wearing such coverings face a fine of 1,000 kroner, while repeat offenders can face fines of 10,000 kroner. Danish police have fined a woman for wearing a niqab in a shopping complex, local media reported.

Google Maps update brings a nifty feature to location tracking
If you check the location of a contact, you'll also see what percentage their battery is at too. That way, you'll know if their phone is about to die and stop updating their location.