Canada Records A Trade Deficit Of $1.4 Billion In May

Canada recorded a trade deficit of $1.4 billion in May after posting a trade surplus in April as imports rose and exports fell.

Statistics Canada said the May trade deficit followed a revised surplus of $462 million in April compared with an initial reading of a $594-million surplus.

Total imports increased 2.1% to $50.9 billion in May as imports of metal and non-metallic mineral products climbed 17.7%.

At the same time, total exports fell 1.6% to $49.5 billion in May. Exports of consumer goods dropped 8.8%, while exports of motor vehicles and parts fell 5.8%.

Canada's trade surplus with the U.S. fell to $6.1 billion in May compared with $6.6 billion in April, while the trade deficit with the rest of the world rose to a record $7.5 billion in May compared with $6.1 billion in April.

Statistics Canada noted that the Canadian dollar in May posted its largest monthly increase against the U.S. dollar since July 2017 as the average value of the Canadian dollar rose 2.4 cents U.S. compared with the average value in April to 82.5 cents U.S.

Statistics Canada also reported the international trade in services deficit rose to $384 million in May compared with $303 million in April as service exports fell 0.1% and service imports rose 0.7%.

Canada's combined trade balance for goods and services was a deficit of $1.8 billion in May compared with a surplus of $159 million in April.