Canada Trade Deficit Widens in November on Import Surge
(Paul Vieira – Wall Street Journal)
Canada’s trade deficit with the rest of the world widened in November as imports surged at their fastest pace in more than eight years on demand for new cellphone models and a ramp-up in Canadian auto-assembly factories. Exports also posted a strong increase for a second straight month.
Canada’s merchandise trade deficit in November swelled from the previous month to a seasonally adjusted 2.54 billion Canadian dollars ($2.03 billion), Statistics Canada said Friday. The October trade deficit was revised slightly upward, to C$1.55 billion. Market expectations were for a trade deficit of C$1.10 billion, according to economists at Royal Bank of Canada.
The bigger-than-anticipated trade deficit in November was due to a strong 5.8% increase in imports, to C$48.75 billion, the biggest one-month gain since July 2009. On a volume, or price-adjusted basis, imports rose 5%. Click here to read more.
U.S. Trade Deficit Rises More Than Expected to a Near 6-Year High on Record Imports
The U.S. trade deficit increased more than expected in November as imports of goods surged to a record high amid strong domestic demand, making it likely that trade will subtract from economic growth in the fourth quarter.
The Commerce Department said on Friday the trade gap widened 3.2 percent to $50.5 billion. That was the highest level since January 2012 and followed an upwardly revised $48.9 billion shortfall in October.
Economists polled by Reuters had forecast the trade deficit increasing to $49.5 billion in November after a previously reported $48.7 billion deficit in the prior month. Click here to read more.