Strong energy exports drove Canada’s trade surplus significantly higher in August.
The country’s merchandise trade surplus was $1.94 billion in August, up from a revised $736 million surplus in July, according to Statistics Canada. Economists had been expecting a surplus of $430 million in August.
August marked 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 soars.
However, risks remain with supply chain bottlenecks hampering the manufacturing of goods amid a fourth wave of COVID-19 cases. Statistics Canada said logistic bottlenecks were still affecting the automotive sector, with auto exports and imports down in August.
In volume terms, exports rose 2.3% and imports fell 3.2%. Shipments abroad of coal, natural gas and crude oil increased, along with metal products. In addition to autos, aircraft and other transportation equipment were a drag on imports during August.
The Canadian dollar was little changed on the report, trading at $1.2589 per U.S. dollar in Toronto.
