MNI 5 THINGS:Canada Goods Trade Gap Returns;Large Aug Revision>

--5 Things We Learned From Canadian Merchandise Trade Data

By Courtney Tower

     OTTAWA (MNI) - The following are the key points from the September 

data on Canadian merchandise trade released Friday by Statistics Canada: 

     - Canada's September merchandise trade balance continued in 

deficit, C$416 million, slightly down from the revised C$551 million 

deficit recorded in August. The August deficit is a large upward 

revision from a C$526 million surplus originally reported. Statistics 

Canada said the revision was mostly due to imports on "three high value 

ships" that reported after publication of the report for August. 

Analysts in a MNI survey had expected goods trade to be flat in 

September. The trade deficit narrowed to C$1.0 billion in the third 

quarter from C$5.1 billion in the second quarter. 

     - Exports were down 0.2% in September, but still managed to rise 

2.6% in the third quarter, following upon a second quarter increase of 

6.0%. The third quarter increase was on prices, as export volumes were 

down 0.3%. Nearly two-thirds of the third quarter exports increase was 

due to sales of energy products, mainly on higher prices, the agency 

said. 

     - Total imports fell 0.4% on the month, despite gains in six of 11 

sections, for decline of 0.1% in the third quarter. Import volumes fell 

-1.5% in September. The September decline in imports was mostly due to a 

C$598 million decrease in import of ships (three icebreakers from Sweden 

in August, none in September). Excluding the ships, imports were up 

0.8%. Lower exports of consumer goods were mostly offset by higher 

exports of energy products. Excluding energy, exports fell 0.8%, a 

second monthly decline. 

     - Imports of industrial machinery, equipment and parts, followed by 

the Bank of Canada as an indicator of investment activity, decreased 

0.9% in September, after remaining flat in August. Still, the category 

recorded a gain of 4.0% in the third quarter after rising 4.3% the 

previous three months. 

     - Regionally, imports from the U.S. rose 1.2% in September, 

featuring higher imports of gold. Exports were up 0.4%, following a 1.5% 

drop in August. As a result, Canada's trade surplus with the U.S. 

narrowed from C$5.0 billion in August to C$4.8 billion in September. 

Exports to the U.S. rose 3.9% in the third quarter, a slowdown from the 

5.5% gain in the second quarter. Exports to non-US countries fell 1.8%, 

while imports were down 3.3%, leading to a narrowing of the deficit to 

C$5.2 billion from C$5.6 billion. 

          --MNI Ottawa Bureau; email: yali.ndiaye@marketnews.com 

     [TOPICS: M$C$$$,MACDS$]