MNI BRIEF: Canada Trade Surplus Unexpectedly Weakened In April

Canada's merchandise trade surplus weakened to CAD1.5 billion in April as export growth slowed more than imports and the federal statistics office also marked down the value of surpluses in the prior three months by CAD1 billion. 

The April balance lagged the CAD2.5 billion economists expected and March's CAD2.3 billion, Statistics Canada said Tuesday. Exports rose 0.6%, slower than March's 7% increase, while import growth slowed to 1.9% from 7.8%.

Import and export gains were led by consumer goods like clothes and food. Auto exports also rose to the highest since October 2020 as local plants were hurt less by chip shortages. 

Export volumes, more closely tied to GDP, declined 2.1% led by crude oil amid maintenance shutdowns. Import volumes fell 0.4% in April. Those declines mean trade may be a surprise drag on Q2 growth like it was in Q1.