Canada’s Recovery Gains Strength

Imports rose broadly in July, reducing Canada’s trade surplus, the government said Thursday in a report most economists cited as evidence that the recovery was gaining strength.

Improved consumer confidence and increased investment are fueling the recovery, the experts said.

A surge in imports, led by industrial goods and an influx of cars and trucks, caused Canada’s merchandise trade surplus to fall to the U.S. equivalent of $56 million, the government agency Statistics Canada said. The surplus was about $8.8 million lower than expected.

Imports jumped by $680 million, to $10.38 billion, and exports were largely unchanged at $10.44 billion, reflecting weak demand for Canadian goods in the United States, Canada’s largest trading partner.