Canada February international merchandise trade balance +1.04B vs +1.30B expected

Canadian trade balance data

Canada February international merchandise trade balance
  • First back-to-back monthly surpluses since late 2016
  • Prior was +$1.41B
  • imports fell 2.4% in Feb (lowest since August)
  • exports fell 2.7% in Feb
  • Exports hampered by a 10.2% decline in motor vehicles and parts in part due to chip shortage effects
  • Export declines were observed in the metal and non-metallic mineral products (-10.9%), motor vehicles and parts, and aircraft and other transportation equipment and parts product sections.
  • imports of energy products decreased by 21.4% in February after 22.8% increase in Jan
  • imports of aircraft and other transportation equipment and parts up +29.1% on four commercial airliner imports
  • Canada’s trade deficit with countries other than the United States widened from $4.7 billion in January to $5.7 billion in February.
  • Canada’s trade surplus with the United States widened from $5.9 billion in January to $6.8 billion in February. This was the largest surplus since September 2008.

The quickly improving trade picture with the United States highlights the knock-on effects of US growth and stimulus. There are also some one-off factors due to the elevated values of natural gas exports in February due to cold weather.

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