Canada’s commerce surplus widens in August as imports fall

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OTTAWA, Oct 5 (Reuters) – Canada’s commerce surplus with the world widened in August, simply beating analyst expectations, as robust exports of power merchandise outweighed a drop a two-way commerce for motor automobiles and components, information confirmed on Tuesday.

The nation’s commerce surplus was C$1.94 billion ($1.54 billion) in August, properly forward of the typical analyst estimate of a surplus of C$430 million and up from a surplus of C$736 million in July.

Exports rose 0.8%, led by power merchandise – which rose to their highest stage since March 2014 – and steel and non-metallic mineral merchandise, which outweighed a drop in motorized vehicle and components exports.

Imports, in the meantime, fell by 1.4%, totally on a decline in motorized vehicle and components imports.

“As we expected, the global chip shortage continued to impact production in that (motor vehicle) sector,” stated Royce Mendes, senior economist at CIBC Capital Markets, in a observe.

“The fact that the wider-than-expected surplus was largely the result of more weakness in goods imports than anticipated will likely blunt any impacts from the data on the Canadian dollar,” he added.

The Canadian greenback was buying and selling almost unchanged after the info, at 1.2589 to the buck, or 79.43 U.S. cents.

($1 = 1.2589 Canadian {dollars})

Reporting by Julie Gordon in Ottawa, further reporting by Fergal Smith in Toronto; Editing by Andrew Heavens and Steve Orlofsky

A truck moves past stacked shipping containers at the Port of Montreal in Montreal, Quebec, Canada, May 17, 2021.  REUTERS/Christinne Muschi