Canadian exports hit record high in March as trade deficit narrows

Canadian exports hit record high in March

OTTAWA — The energy and consumer goods sectors helped Canadian exports rise to a record high in March as the country’s trade deficit narrowed to $135 million, Statistics Canada said Thursday.

Economists had expected a deficit of $800 million, according to Thomson Reuters.

“This is a solid report,” said Benjamin Reitzes, Canadian rates and macro strategist at BMO Capital Markets.

The shortfall followed a revised deficit of $1.1 billion for February compared with an initial reading of a deficit of $972 million for the month.

Gains in eight of 11 sectors in March helped exports rise 3.8 per cent to $47.0 billion, while volumes gained 2.5 per cent and prices increased 1.3 per cent.

Driving the gain was a 7.0 per cent increase in energy exports to $8.7 billion. A boost in natural gas exports attributable to cold temperatures in the northeastern United States and increased coal exports to Asia were both factors.

“Combined with a continued creep higher in crude prices, look for energy to continue being a catalyst in supporting Canadian exports,” CIBC economist Nick Exarhos wrote in a report.

Consumer goods exports also gained ground, climbing 6.8 per cent to $6.1 billion. Exports of other food products led the increase with a gain of 11.9 per cent to a record $1.4 billion, boosted by exports of yellow peas and red lentils to India.

On the other side of the equation, imports increased 1.7 per cent to $47.1 billion with gains in seven of 11 sectors. Prices rose 1.9 per cent and volumes fell 0.2 per cent.

Statistics Canada said higher imports of metal and non-metallic mineral products, industrial machinery, equipment and parts, and motor vehicles and parts were the main contributors.

Metal and non-metallic mineral product imports grew 10.4 per cent to $4.0 billion as unwrought precious metals and precious metal alloys rose 61.1 per cent.

Imports of industrial machinery, equipment and parts increased 4.1 per cent to $4.4 billion, while motor vehicles and parts gained 1.5 per cent to reach a record high $9.3 billion.

On a regional basis, Canada’s trade surplus with the United States slipped to $4 billion in March compared with $4.5 billion in February.

Exports to the United States edged up 0.1 per cent to $34.4 billion, while imports from the United States increased 2.0 per cent to $30.4 billion.

Meanwhile, Canada’s trade deficit with countries other than the United States narrowed to $4.1 billion in March from $5.6 billion in February.

Craig Wong, The Canadian Press

Just Posted

Terrace RCMP arrest Kitimat man for drug trafficking

A police investigation has led to the arrest of a Kitimat man… Continue reading

Terrace Fire Department announces new training program, increased calls in year-end report

All firefighters in Terrace are expected to complete training by the end of April 2018.

UPDATE: Prince Rupert woman killed in logging truck collision

Empty logging truck west of Terrace struck moose before colliding with the eastbound SUV

David Edwardsen sentenced to eight years in jail

Sentencing result of 14 drug and firearms convictions

Taking a virtual walk across Canada

The Kermode Friendship Society challenged their staff to participate in this year’s competition, which aims to promote physical activity, networking, and friendly competition.

How to keep local news visible in your Facebook feed

Facebook has changed the news feed to emphasize personal connections. You might see less news.

Canucks came out hot, beat Bruins 6-1

Loui Eriksson scores twice, catapulting Vancouver to a lopsided victory over Boston

B.C. man brings dog to court as ‘best witness’

Man is defending himself on charges of uttering threats, possessing weapon for dangerous purposes

Vancouver artist’s cartoon of Florida school shooting resonates

Cartoon shows football coach, one of the victims, meeting others killed in school shootings

Trudeau family arrives in India for state visit

Seven-day visit includes meeting with Indian Prime Minister Narendra Modi

Military seeks DNA experts to help ID missing war dead

Federal program recovers, identifies and arranges burials for Canada’s nearly 28,000 missing war dead

B.C. files new legal action against TransMountain pipeline

Province tries to uphold City of Burnaby bylaws, provoking Alberta

BCHL Today: Powell River stuns Vernon and BCHL grads lead Team Canada

BCHL Today is a (near) daily look at what’s going on around the league and the junior A world.

Most Read