Canadian Trade Surplus Jumped in August, Powered by Energy

The country’s merchandise trade surplus was C$1.94 billion ($1.5 billion) from a revised C$736 million surplus in July, Statistics Canada reported Tuesday in Ottawa. Economists were expecting a surplus of C$430 million, according to the median estimate in a Bloomberg survey.

August was the third consecutive month in which Canada’s trade balance was in surplus. Exports rose 0.8% with energy products rising the most and imports fell 1.4%.
 

 
The trade report shows the extent to which exports have recovered in Canada, with more shipments of energy products and metals as international demand returned. However, risks to future growth remain, with supply chain bottlenecks hampering the manufacturing of goods amid a fourth wave of Covid-19 cases. The agency said that supply chain bottlenecks were still affecting auto manufacturers, with auto exports and imports down on the month.

In volume terms, total exports rose 2.3%. Real imports decreased 3.2%.