Canada trade deficit narrows

Canada's trade deficit narrowed to Can$1.5 billion (US$1.2 billion) in October, as trade with the United States picked up, the government statistical agency announced Tuesday. The figure was down from Can$3.4 billion posted in the previous month, and beat analysts' expectations.
"We're eagerly awaiting signs on Q4 growth after the third quarter's slowdown, and trade data for October give us reason for optimism," commented CIBC Economics analyst Nick Exarhos. According to Statistics Canada, exports rose 2.7 percent to Can$44.5 billion.
Gains were posted in lubricants and gasoline blending stocks, diesel and fuel oils - up for a second consecutive month on higher US demand. A US drawdown in refined petroleum products led to increased exports from Canadian refineries. Increased Chinese demand also pushed up canola seed and canola oil exports. There were also increased exports of canola seed to Mexico, the United Arab Emirates, Pakistan and Japan.
Imports, meanwhile, fell 1.6 percent to Can$45.9 billion. Imports of passenger cars and light trucks fell after three consecutive monthly increases. Imports of motor vehicle engines and motor vehicle parts were also down amid work stoppages and plant shutdowns.
After peaking in September, imports of zinc ores from Alaska decreased in the month. Overall imports of metal ores and non-metallic minerals fell. Aircraft imports, however, increased with the purchases of US airliners. As a result, Canada's trade surplus with its largest trading partner, the United States, widened from Can$2.0 billion to Can$3.5 billion in October.