Canada's trade deficit almost doubled in May from the previous month as imports from the U.S. hit a record high. Meanwhile, export growth slowed in the month, as sales abroad of metals and motor vehicles were offset by a decline in energy products.
Two-way trade in Canada with the rest of the world rose strongly from a year ago in May, underscoring underlying strength in the economy that has prompted the Bank of Canada to signal that interest-rate increases are in the offing.
Canada's merchandise trade deficit in May widened to a seasonally adjusted 1.09 billion Canadian dollars ($836.5 million), Statistics Canada said Thursday, compared with a revised C$552 million shortfall in the previous month. The previous estimate indicated a smaller C$370 million trade deficit in April.
Traders were expecting a May trade deficit of C$500 million, according to a report from Royal Bank of Canada.
In May, exports climbed 1.3% to C$48.69 billion. On a one-year basis, exports jumped 17.8%, or the strongest 12-month showing in nearly six years.
Imports rose in May 2.4% to C$49.77 billion, marking one of the strongest month-over-month gains in years.
In volume, or price-adjusted, terms, exports rose 1.1% and imports climbed 1.8%.
The total value of trade in Canada, or exports plus imports, climbed 13.8% in May from the same year-ago month.
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(END) Dow Jones Newswires
July 06, 2017 08:45 ET (12:45 GMT)