Trade deficit grows to $2.5B in August compared with $817M deficit in July
Numbers buoyed by a 3.1% increase in motor vehicle exports to $7.8 billion.
Oil & Gas
OTTAWA — Statistics Canada says the country’s trade deficit with the world increased to $2.5 billion in August as exports fell due to a sharp drop in oil prices.
Economists had expected a deficit of $1.2 billion for the month, according to Thomson Reuters.
Statistics Canada also updated its reading for July to show a deficit of $817 million compared with its initial reading of a deficit of $593 million.
The result for August came as exports fell 3.6% in the month to $44 billion, while imports edged up 0.2% to $46.5 billion.
Exports in the energy sector fell 14.7% to $6.3 billion, due to a 20.9% drop in crude oil and crude bitumen. For the group as a whole, prices fell 16.4% while volumes increased 2%.
Consumer goods exports dropped 8% to $5.9 billion on lower volumes, while metals and non-metallic mineral products fell 9.7% to $4.5 billion.
However, exports of motor vehicles and parts rose 3.1% to $7.8 billion due to a 4.5% increase in exports of passenger cars and light trucks.
On the other side of the trade equation, imports of consumer goods increased 2.6% to $10.0 billion, while metal and non-metallic mineral products rose 6% to $3.9 billion.
In August, exports to the US fell 3% to $33.7 billion while imports from the US slipped 0.8% to $30.8 billion.
Exports to countries other than the United States fell 5.5% to $10.2 billion, while imports from countries other than the US increased 2.2% to $15.6 billion.