Canada Flips to $972M Trade Deficit in February after 3 Surpluses in a Row
Canada’s trade balance changed direction in February, as the economy posted a trade deficit of $972 million after three straight monthly surpluses.
Statistics Canada reported Tuesday that imports only increased by a little bit — 0.6 per cent to be precise. But the balance flipped to a sizable deficit because exports plunged. Exports were lower in 8 out of 11 subsectors tracked by the statistics agency.
All in all, exports were down by 2.4 per cent from January’s record high level, to $45.3 billion. Exports of just about everything decreased, including farm, fishing and intermediate food products, aircraft and other transportation equipment and parts, as well as consumer goods.
“After a huge January for the Canadian economy, it looks as though we could be in for some payback in the February data,” Bank of Montreal economist Benjamin Reitzes said. Click here to read more.
U.S. Trade Deficit Falls from Two-Year High on Weak Imports
(Lucia Mutikani – Reuters)
The U.S. trade deficit fell from a near two year high in February as slowing domestic demand weighed on imports and stronger global growth boosted exports of American goods.
The politically sensitive trade gap with China narrowed sharply by 26.6 percent from January to $23 billion ahead of a summit between President Donald Trump and China’s Xi Jinping this week, although seasonal factors were likely behind the dramatic drop, economists said.
The Commerce Department said on Tuesday the trade deficit declined 9.6 percent to $43.6 billion, also as exports increased to their highest level in more than two years, after rising to a near two-year high of $48.2 billion in January. Click here to read more.