Falling oil prices took a bite out of exports in October as Canada’s merchandise trade deficit increased to roughly $1.2 billion in October compared with $891 million in September, Statistics Canada said Thursday.
Economists had expected a deficit of $700 million, according to Thomson Reuters Eikon.
“October’s surprise disappointment in the trade deficit adds to weakness from the prior month but the details reveal that momentum beneath the surface is somewhat stronger,” CIBC economist Katherine Judge wrote in a report.
In volume terms, exports increased 1.2 per cent as lower energy prices led to a 2.3 per cent drop in total export prices. Real imports were essentially unchanged. Click here to read more.
- Canadian International Merchandise Trade – October 2018 (Statistics Canada)
- Canadian Trade Deficit Widens in October on Energy Prices (FX Wire)
- Oil Squeeze Widens Canada’s Trade Deficit More Than Expected (Bloomberg)