MNI: 5 Things We Learned From Canadian Merchandise Trade Data>

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

Canadian merchandise trade report released Tuesday by Statistics Canada: 

     - Canada's goods trade deficit narrowed to C$1.5 billion, while 

analysts in a MNI survey had expected the gap to come in at C$2.7 

billion. September deficit was revised to C$3.4 billion from C$3.2 

billion. 

     - Exports rose 2.7% and imports fell 1.6%. In real terms, exports 

rose 1.2% and imports contracted 3.9%, the largest decrease since 

October 2016. The real trade balance went to a C$0.1 billion surplus in 

October from a C$2.0 billion deficit in September. 

     - Details were overall strong on the export front, with widespread 

gains as 9 of 11 major sectors recorded higher exports, led by basic and 

industrial chemical, plastic and rubber products (+12.4%). Energy 

exports rose 2.7% due to higher prices (volumes -0.3%). Real exports 

excluding energy were up 1.7%. 

     - Regionally, exports were led by higher demand from the U.S.: 

sales to the U.S. rose 4.1% after falling 1.9% in September. But exports 

to non-US countries were down 1.4%. 

     - On the import front, the picture was weak, with declines led by 

autos and parts (-8.1%), due to planned shutdowns in the industry. 

Industrial machinery and equipment imports fell 1.9%, with volumes down 

3.5%, a negative sign for business investment activity in Canada. 

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

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