MNI DATA IMPACT: Canada Goods Trade Gap Disappoints>

By Yali N'Diaye

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

data on the Canadian merchandise trade released Wednesday by Statistics 

Canada: 

     - The goods trade deficit narrowed to C$4.2 billion, while analysts 

in a MNI survey had expected a deficit of C$3.5 billion, similar to the 

market consensus. The disappointing reading was reinforced by a revision 

to the December deficit estimate to C$4.8 billion from C$4.6 billion. 

     - The smaller deficit was largely due to higher energy exports. 

Total exports rebounded 2.9% to C$47.6 billion, marking the first 

increase since July 2018. Much of the gain was price related, as real 

exports rose just 0.9%. 

     - Crude oil prices soared 36.0%, driving crude oil exports up 

36.5%. Overall energy product exports were up 14.0% in January, the 

largest gain since December 2010. However, volumes contracted 1.5%. 

     - Real exports excluding energy rebounded 1.7% on the month, after 

edging down 0.1% in December. 

     - Total imports increased 1.5% in January to a record C$51.8 

billion, led by aircraft, as Canada imported more airliners from the 

U.S. Imports from the U.S. were up 1.8%. 

     - Despite a 1.1% increase in exports to the U.S. after five months 

of declines, the trade surplus with the U.S. narrowed to C$1.6 billion, 

the smallest since June 2016. The deficit with non-US countries, on the 

other hand, decreased to C$5.8 billion from C$6.6 billion. 

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

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