Free Trial

MNI DATA IMPACT: Canada Sept. Trade Gap Bigger Than Forecast>

By Greg Quinn and Anahita Alinejad
     Ottawa (MNI) - Canada's September trade deficit was wider than 
forecast with imports and exports falling, and the August shortfall was 
revised to show even more weakness.
     The September shortfall of C$978 million was larger than 
the MNI economist median of C$750 million. Ottawa-based Statistics 
Canada also raised the August deficit to C$1.24 billion from C$955 
     Exports fell 1.3% in September, the third decline in four 
months. Shipments of metals fell 7.3% led by gold. Energy exports fell 
2.6% with crude oil production disrupted by shutdowns at a Newfoundland 
offshore platform, bringing the decline in the last 12 months to 7.4%.
     Imports declined 1.7%, suggesting Canada's overall trade is being 
hurt by global trade tensions that led the central bnak to consider 
cutting interest rates last week. Governor Stephen Poloz said exports 
will fall in the second half of this year, slowing an economy that still 
remains close to full capacity on resilient domestic spending. 
     Exports fell 2.3% in the third quarter following a 4.8% gain in the 
second. Imports declined 0.6% in the third quarter, about the same pace 
as the prior three months.
     Canada remains on track for a record deficit this year with 
non-U.S. countries. The shortfall from January to September of C$52.6 
billion beats last year's previous record of C$48.3 billion. That 
shortfall is being eased by a C$39.3 billion surplus with the U.S. so 
far this year.
     Another sign of the broad weakness in global trade was that 
shipments declined in seven of 11 major categories for both imports and 
exports on the month.       
--MNI Ottawa Bureau; +1-613-314-9647;

To read the full story



MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.