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.
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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 billion, while volumes gained 2.5 per cent and prices increased 1.3 per cent.
Driving the gain was a 7 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. Read more…
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