Canada August Trade Deficit Larger than Expected


Canada's trade deficit widened to CAD 3.41 billion in August 2017 from a revised CAD 2.98 billion in the previous month and worse than market expectations of a CAD 2.60 billion gap.

Exports fell 1 percent from the previous month to CAD 43.6 billion in August, despite increases in six of eleven sections. Exports of consumer goods were down 3.8 percent to CAD 5.7 billion in August, the third consecutive monthly decline. Pharmaceutical and medicinal products (-8.6 percent) led the decrease, followed by prepared and packaged seafood products (-10.5 percent). Exports of basic and industrial chemical, plastic and rubber products declined 5.9 percent to CAD 2.7 billion, due to lower sales of basic chemicals (-8.3 percent). Exports of metal ores and non-metallic minerals, down 9.7 percent to CAD 1.5 billion, also contributed to the decrease, due to lower exports of radioactive ores and concentrates (-75.3 percent).

Imports were almost unchanged at CAD 47.0 billion, following the largest decline since January 2009 in July. Imports of motor vehicles and parts rose 2.5 percent in August to CAD 9.3 billion, boosted by purchases of motor vehicle engines and motor vehicle parts (5.3 percent). Also, imports of metal ores and non-metallic minerals rose 9.9 percent to CAD 1.2 billion in August. Other metal ores and concentrates (15 percent) were responsible for the increase, mostly on higher imports of lead. By contrast, imports of consumer goods fell 1.8 percent to CAD 10.1 billion in August, the fourth consecutive monthly decrease. Clothing, footwear and accessories (-5.9 percent) led the decline.

Statistics Canada | Marta Dubiel | marta.dubiel@tradingeconomics.com
10/5/2017 1:41:09 PM