- Nick Exarhos, CIBC
Canada's trade balance advanced more than expected in October, official data showed on Tuesday. According to Statistics Canada, the country's trade deficit narrowed to a seasonally adjusted C$1.1 billion in the reported month mostly due to the import from South Korea of a module for the Hebron offshore oil project in Newfoundland and Labrador. Market analysts expected the trade gap to narrow to C$2.0 billion after it hit a record high of C$4.4 billion in September. Back in October, Canadian imports dropped 6.3%, the biggest decline since January 2009, to C$44.7 billion, the lowest level since February 2015. However, excluding the above mentioned shipment, imports declined just 0.3% in the reported month. Still, even without this boost, the trade deficit would decrease to C$1.5 billion between September and October. Meanwhile, Canadian exports climbed 0.5% to C$43.6 billion. Excluding energy, they fell 0.3%. In volume terms, exports declined 0.7% in October, compared to September's fall of 1.5%. On the positive side, the country's exports to the US jumped 1.6% after falling 1.5% in September, the largest gain since March, while imports from the US were 0.1% down. Exports to non-US countries dropped 2.7%, led by Britain, whereas imports declined 16.7%.
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