(Ottawa) Canada’s merchandise trade surplus rose to $ 2.1 billion in October, as exports of motor vehicles, their parts and energy products increased, Statistics Canada said on Tuesday.
This compares to a revised trade surplus of $ 1.4 billion for September, when the initial reading for that month was $ 1.9 billion.
TD Bank economist Omar Abdelrahman said it was a “strong report.”
“Trade fundamentals remain on solid footing, aided by the continued global economic recovery and, most importantly, the strength of manufacturing sentiment south of the border,” Abdelrahman wrote in a data report.
He cautioned, however, that there are downside risks that should not be ignored.
“In particular, the near-term business outlook is sensitive to risks emanating from the devastating flooding in British Columbia, which is impacting trade flows through the Port of Vancouver. Indeed, exports and imports could experience a significant drop in the release of November data, ”warned Mr. Abdelrahman.
Statistics Canada noted that the floods and mudslides had caused major disruptions in the movement of goods to and from major points of entry on the West Coast. The federal agency stressed that the disruption is expected to impact November’s trade data, which will be released on January 6.
In October, total exports rose 6.4% to a record $ 56.2 billion.
Exports of motor vehicles and parts rose 30.8% to $ 6.1 billion, as shutdowns related to shortage of semiconductor chips at Canadian factories declined from September. Rising prices also helped exports of energy products rise 9.8% to a record 13.9 billion.
Total imports rose 5.3% to a record 54.1 billion, as imports of motor vehicles and their parts rose 27.2% in October to reach 8.5 billion.
Expressed in volume, total exports increased 2.8% in October, while total imports increased 7.0%.
Regionally, Canada’s trade surplus with the United States was $ 8.3 billion in October, compared to a surplus of $ 8.4 billion in September. Exports to the country’s largest trading partner increased by 6.9%, and imports by 9.1%.
Canada’s trade deficit with countries other than the United States was $ 6.2 billion in October, compared to September’s $ 7.0 billion.
In a separate report, Statistics Canada said the country’s monthly international trade in services deficit was 562 million in October, compared to 758 million in September.
The agency said service exports rose 2.2 percent to $ 11.4 billion, while imports rose 0.4 percent to $ 12.0 billion.
Overall, Canada recorded a trade surplus of $ 1.5 billion in goods and services in October, compared to a surplus of $ 657 million in September.