(Ottawa) Canada posted a merchandise trade deficit of $1.4 billion in May, compared to a surplus in April, as imports increased and exports declined.
Statistics Canada said Friday that the result followed an adjusted surplus of $462 million in April from a preliminary figure of a surplus of $594 million.
CIBC’s chief economist, Royce Mendes, said economists expect a second consecutive surplus for this month.
“It was a seesaw and a failure of the Canadian trade data in May,” Mendes wrote in a report. However, the rise in real imports, especially for items such as machinery and industrial equipment, indicates that domestic demand continues to increase. ”
Total imports rose 2.1% to $50.9 billion in May, as imports of mineral and non-metallic products rose 17.7%.
During the same period, total exports fell 1.6% to $49.5 billion in May.
Exports of consumer goods declined by 8.8%, while exports of cars and spare parts declined by 5.8%.
Canada’s trade surplus with the United States narrowed to $6.1 billion in May from $6.6 billion in April, while the trade deficit with the rest of the world hit a record high of $7.5 billion in May, compared to $6.1 billion in April.
Statistics Canada noted that the Canadian dollar recorded its largest monthly increase against the US dollar since July 2017, with the average Canadian dollar rising 2.4 US cents from the average value from April to 82.5 US cents.
Expressed in US dollars, Statistics Canada said imports rose 5.2% in May and exports rose 1.4%.
In terms of volume, imports rose 2.5% in May and exports declined 3.1%.
Statistics Canada also reported that the deficit in international trade in services reached 384 million in May from 303 million in April, as services exports declined 0.1% and services imports increased 0.7%.
Canada’s combined trade balance for goods and services posted a deficit of $1.8 billion in May, compared to a surplus of $159 million in April.
