Canada's June trade deficit much larger than expected

Adds details of release, background

OTTAWA, Aug 5 (Reuters) - Canada's trade deficit unexpectedly ballooned to C$3.19 billion ($2.41 billion) in June on a surge in imports of motor vehicles and parts as the economy started to reopen, Statistics Canada data indicated on Wednesday.

Analysts polled by Reuters had predicted June's deficit would be C$0.90 billion. Statscan revised May's deficit up to C$1.33 billion from an initial C$0.68 billion.

Although imports jumped 21.8% from May and exports rose 17.1%, both remain at levels well below those in February before the coronavirus outbreak started.

Imports of motor vehicles and parts jumped to $5.23 billion from C$1.66 billion in May, accounting for almost half the total growth in imports. June was the first full month of production for the highly integrated North American motor vehicle industry since February.

The motor vehicle and parts industry accounted for more than two-thirds of the overall growth in exports. Exports to and imports from the United States - by far Canada's largest trading partner - both rebounded but remain well below February levels.

($1=1.3242 Canadian dollars)

(Reporting by David Ljunggren and Julie Gordon; editing by Jason Neely and Bernadette Baum)

((david.ljunggren@thomsonreuters.com; +1 613 235 6745; fax +1 613 235 5890; Reuters Messaging: david.ljunggren.reuters.com@reuters.net))

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