OTTAWA –
Canada’s merchandise trade surplus increased to $ 2.1 billion in October, as exports of motor vehicles, parts and energy products increased, Statistics Canada said on Tuesday.
The result compares to a revised trade surplus of $ 1.4 billion for September from the initial reading of a surplus of $ 1.9 billion.
TD Bank economist Omar Abdelrahman called it a “strong report.”
“Trade fundamentals remain on solid footing, aided by the continued global economic recovery and, most importantly, by the strength of manufacturing sentiment south of the border,” Abdelrahman wrote in a report.
However, he warned that there are downside risks that should not be ignored.
“In particular, the near-term business outlook is sensitive to risks emanating from the devastating flooding in British Columbia, which is impacting trade flows through the Port of Vancouver. Indeed, both exports and imports could experience a significant drop in the release of November data, ”said Abdelrahman.
Statistics Canada noted that the floods and mudslides caused major disruptions in the movement of goods to and from major points of entry on the West Coast. The agency said the disruptions are expected to impact November’s trade data due to be released on January 6.
In October, total exports rose 6.4% to a record $ 56.2 billion.
Exports of motor vehicles and parts rose 30.8% to $ 6.1 billion, as shutdowns in the auto sector linked to shortages of semiconductor chips eased from September. Rising prices also helped exports of energy products rise 9.8% to a record $ 13.9 billion.
Total imports rose 5.3 percent to a record $ 54.1 billion, as imports of motor vehicles and parts rose 27.2 percent in October to $ 8.5 billion.
In terms of volume, total exports increased 2.8% in October, while total imports increased 7.0%.
Regionally, Canada’s trade surplus with the United States was $ 8.3 billion in October, compared with a surplus of $ 8.4 billion in September, as exports to the country’s largest trading partner increased by 6.9% and imports by 9.1%.
Canada’s trade deficit with countries other than the United States was $ 6.2 billion in October, compared to $ 7.0 billion in September.
In a separate report, Statistics Canada said the country’s monthly international trade in services deficit was $ 562 million in October, down from $ 758 million in September.
The agency said service exports rose 2.2% to $ 11.4 billion, while imports rose 0.4% to $ 12.0 billion.
Together, Canada recorded a trade surplus of $ 1.5 billion in goods and services in October, compared to a surplus of $ 657 million in September.
This report by The Canadian Press was first published on December 7, 2021.
11: 30ET 07-12-21
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