Canada trade deficit narrows in June

Canada's trade deficit narrowed in June to Can$476 million (US$ 361 million) as exports rose 6.3 percent thanks in part to a weakening Canadian dollar, Statistics Canada said Wednesday.

The improvement, from a Can$3.4 billion deficit in May, was much better than anticipated. Analysts had expected the deficit to come down to only Can$2.9 billion.

The volume of exports rose 4.8 percent in June, after declining for five consecutive months, the agency said.

Sales to the United States led the rise in exports, which climbed 7.1 percent to Can$34.2 billion, while imports from the United States declined 0.9 percent to Can$29.5 billion.

Exports to countries other than the United States increased 3.8 percent to Can$10.4 billion.

Exports of consumer goods were up 17.2 percent, led by pharmaceuticals (41.7 percent), packaged seafood products (128.9 percent) and miscellaneous goods and supplies (17.1 percent) on higher volumes.

The energy sector, which has been hit hard by falling oil prices over the past year, rebounded in June with a 3.7 percent increase in exports to Can$7.9 billion due to higher prices.

Exports of forestry products and construction and packaging materials rose 9.2 percent to Can$3.4 billion.

Imports declined by Can$45.1 billion in the month, led by reduced imports of aircraft and transportation equipment (19 percent) and energy products (10.4 percent).