Monthly Merchandise Trade Report
Monthly Report on Canada's International Merchandise Trade Performance, October 2016
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- Canadian merchandise imports fell 6.3% in October, after an exceptional increase in imports in September due to the Hebron project, to return to previous levels.
- In October, exports were up 0.5% to $43.6 billion.
- Canada’s merchandise trade deficit narrowed to $1.1 billion in October, the smallest since January 2016, from a record of $4.4 billion in September.
- Canada’s trade surplus with the U.S. widened again in October, from $2.5 billion in September to $3.0 billion.
- Both exports and imports from countries other than United States were lower in October.
- Imports in October were at their lowest level since February 2015. The lasting weakness in imports is likely a reflection of the weakness in business investment during this period.
- Canada registered its smallest deficit since January 2016.
- Exports to the United States increased 1.6%.
- Exports of energy products increased 5.5% to $6.5 billion, the eighth consecutive monthly increase.
- Year-to-date exports were $428.2 billion, down 1.9% from a year ago and imports, at $456.5 billion, were unchanged (0.0%) from last year. The trade deficit is at $28.3 billion, $8.3 billion greater than a year ago.
Chart 1: Value of Canada's trade in goods, Oct. 2011 to Oct. 2016
Canadian Merchandise Exports
Canadian merchandise exports increased 0.5%, to $43.6 billion, as a 1.2% increase in prices was partially offset by a 0.7% decline in volumes. Exports increased in October, despite decreases in 7 of 11 sectors. Higher exports of energy products, up 5.5% (or $342 million) and motor vehicles and parts, up 3.2% (or $250 million) were partially offset by lower exports of consumer goods, down 3.2% (or $199 million) and aircraft and other transportation equipment and parts, down 4.5% (or $89 million), to lead to an overall increase of $222 million. Year-to-date, total exports are down 1.9%, or $8.9 billion, over the January-October period of 2015. Exports were lower in October to United Kingdom (down $469 million), on fewer exports of precious metals.
Canadian Merchandise Imports
Canadian merchandise imports: following September’s record high related to an exceptionally large shipment of industrial machinery, equipment and parts, imports fell 6.3% to $44.7 billion in October, as volumes decreased 6.2% and prices edged down 0.1%. Imports were down in 7 of 11 sectors, led by industrial machinery, equipment and parts, down 42% (or $2.9 billion), energy products, down 11.6% (or $258 million) and metal ores and non-metallic minerals, down 12.5% (or $120 million). Year-to-date, imports are virtually unchanged (down $138 million, or 0.0%) over the same period last year.
- Imports declined in 8 out of 11 major sectors, but one large shipment of a module from South Korea destined for an oil project in Newfoundland offset declines elsewhere. Hence, industrial machinery, equipment and parts imports (up $2.9 billion) led sectoral increases for the month. Motor vehicles and parts (down $236 million) and aircraft and other transportation equipment and parts (down $210 million) led declines.
- Geographically, imports from 8 out of 10 of Canada’s major trading partners declined. Imports from South Korea (up $2.9 billion) spiked, offsetting losses elsewhere. Imports from the U.S. (down $325 million) and the United Kingdom (down $171 million) posted the largest declines for the month.
- In October 2016, Canada’s trade surplus widened from $2.5 billion in September to $3.0 billion.
- Exports to United States increased 1.6%, led by crude oil and crude bitumen.
- Imports from United States edged down 0.1% to $29.7 billion.
Source: CANSIM Table 228-0069, Merchandise imports and exports, Balance of payments basis, seasonally adjusted, current dollars.
Countries other than United States:
- Trade with countries other than United States was lower than in September.
- Exports to non-US countries decreased 2.7%, to $10.8 billion, led by lower exports to United Kingdom (down $469 million), on fewer exports of precious metals.
- Exports to Brazil were also lower, but were up to Saudi Arabia and the Netherlands.
- Imports from non-US countries fell 16.7% to $15.0 billion in October.
- Imports from South Korea fell $3.0 billion, representing a return to more normal levels. Additionally, imports from Algeria and Saudi Arabia were lower, but higher from China and Switzerland.
- As a result, Canada’s trade deficit with countries other than the US narrowed from $6.8 billion in September to $4.1 billion in October.
|Industrial Machinery & Equipment||2,763||0.7%||4,024||0.1%|
|Electronic./Electric. Machin. & Equip.||2,320||1.7%||5,259||-0.4%|
|Aircrafts/Other Transportation Equip.||1,875||-8.2%||1,314||-6.7%|
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