UPDATE 1-Canada July trade deficit swells as exports slide

* Trade deficit grows to C$2.74 billion in July

* Exports fall 0.7 percent, imports up 2 percent

* Surplus with United States continues to shrink (Adds details)

OTTAWA, Sept 9 (Reuters) - Canada's trade deficit widened more than expected in July as exports to the United States sank because of anemic demand while overall imports surged to their highest level since November 2008.

The shortfall in July totaled C$2.74 billion ($2.66 billion), Statistics Canada said on Thursday, more than triple the deficit forecast by analysts in a Reuters poll of C$810 million.

Statscan revised its estimate of the June trade deficit to C$1.81 billion from C$1.13 billion previously.

Exports in July fell 0.7 percent to C$32.80 billion, below the consensus forecast of C$33.40 billion, dragged down largely by weak demand for machinery and equipment and forestry products.

Imports jumped 2 percent to C$35.54 billion, led by energy products and autos, surpassing the forecast of C$34.70 billion.

Canada's trade surplus with the United States narrowed to C$1.2 billion in July from C$2.4 billion in June as the stumbling U.S. economic recovery reduced demand for Canadian goods. ($1=$1.03 Canadian) (Reporting by Louise Egan and Howaida Sorour; Editing by Padraic Cassidy)