Canada's merchandise trade surplus hit $1.1 billion in September

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Canada’s merchandise trade surplus hit $1.1 billion in September

Cargo containers pile up at a Port of Vancouver terminal.

Canada's merchandise trade surplus stood at $1.1 billion in September as growth in exports, boosted by wheat and crude oil, outpaced that of imports, Statistics reported on Thursday. Canada.

The federal agency also revised its data for August to show a surplus of $550 million, compared to an initial reading of #x27;a $1.5 billion surplus.

Canada posted its ninth consecutive trade surplus in September as the depreciation of the loonie boosted exports, Bank of Montreal economist Shelly Kaushik wrote in a report.

“Unfortunately, this latest result also adds to domestic inflationary pressures, which will keep the Bank of Canada on edge. While weaker commodity prices have weighed on nominal flows in recent months, trade volumes are expected to contribute to growth in the third quarter. »

— Shelly Kaushik, Bank of Montreal

September total exports rose 1.3% to $66.4 billion, according to Statistics Canada.

Exports of agricultural and fishing products and intermediate food products increased by 16.7% to nearly $4.9 billion, with wheat exports notably jumping by 65.2 % in September.

Exports of energy products rose 1.9% to $18.8 billion, with crude petroleum rising 4.0%, boosted by higher volumes. Natural gas exports rose 10.3%.

Meanwhile, imports rose 0.4% in September to $65.2 billion, a 22.7% increase in pharmaceuticals helped push consumer goods imports up 3.7% to $13.7 billion.

Imports of industrial machinery, parts and equipment rose 4.1% to a record $7.7 billion, while imports of energy products fell 16 .7% to $3.8 billion.

According to Statistics Canada, the average value of the Canadian dollar in September was 75.1 US cents, down 2.3 US cents from the August average. This is its largest monthly decline since March 2020.

The agency noted that a large portion of import transactions and export was done in US dollars. These transactions must then be converted into Canadian dollars when compiling trade statistics.

So when the Canadian dollar depreciates against the US dollar, monthly trade values ​​converted to Canadian dollars are higher, Statistics Canada explained.

Exports, expressed in US dollars , fell 1.7% in September, while imports fell 2.5%. Expressed in volume, total exports rose 1.7% in September, while imports fell 0.8%.

In a separate report, Statistics Canada said that the country's monthly international trade deficit in services narrowed to $1.6 billion in September from a deficit of $1.8 billion in August. Services exports rose 2.3% to $12.9 billion and services imports edged up 0.5% to $14.5 billion.

Canada's combined international trade in goods and services ended in a deficit of $416 million in September, compared to a deficit of $1.2 billion for August.

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