B.C. exporters posted massive sales in May, with dollar-volumes reaching a record $4.567 billion.
This was 40% higher than a year ago. We calculate an 8% increase from April, seasonally adjusted. Similarly, imports rose 39% year over year, while climbing modestly by 1% from April (seasonally adjusted).
Trade remained on the upswing amid global economic expansion, which has supported commodities. While base-period effects of weaker exports early in the pandemic contributed, exports are up a third from pre-pandemic levels, while imports are about 8% higher.
Export growth was again dominated by natural resources and related manufacturing. Forestry product exports more than doubled from a year ago and increased 17% from April on a seasonally adjusted basis, accounting for more than half of the net gain. Growth continued to be lifted by record lumber prices and high demand, although some moderation is expected as prices have corrected sharply. Sales of energy products rose 30% year over year and 17% from May 2020. Metallic and non-metallic mineral products were steady from April but climbed 80% year over year. Exports of basic/industrial chemicals, plastic and rubber products nearly doubled from April, and 85% from a year ago. Weaker links were motor vehicles/parts, raw metal ores and minerals and aircraft/other transportation equipment.
With the latest gain, year-to-date exports rose 28%, led by resource products, specifically forestry (67%), while imports rose 17%. Exports will stay supported given global growth outlooks. That said, waning of the pandemic will rotate demand towards services, and commodity prices will likely ease, tempering some of B.C.’s gain.
As with most other provinces, B.C. building permits ratcheted lower in May. Third-wave pandemic measures likely had little effect on building intentions, which reversed course after a spike in February and March permits. Dollar-volume permits reached $1.37 billion, which was 10% lower than April and followed a 13% decline the previous month. Through five months, building permits were up 16%.
Residential building permits led May’s monthly decline with a 16.9% decline from April to $905.7 million, down 11.7% year over year. Consistent with typical swings in monthly activity, the large decline owed to the multi-family sector, which fell by 24% from April as single-detached permits were unchanged. •
Bryan Yu is chief economist at Central 1 Credit Union.
