Thursday, October 14, 2010

Canada Exports to U.S. Grow, Shrink Trade Deficit

(Reuters – Louise Egan and Howaida Sorour)

Canada increased its exports to the United States in August after two months of declines, helping shrink the country's trade deficit more than expected in a welcome sign for third-quarter economic growth.

A 2.7% jump in shipments to the flagging U.S. market, which bought 74% of total Canadian exports, boosted Canada's trade surplus with its neighbor for the first time in eight months, Statistics Canada said on Thursday. Passenger car sales led the rise in exports to the U.S.

The export rebound narrowed the overall trade deficit to C$1.35 billion ($1.35 billion) from a revised C$2.55 billion in July, compared with the market forecast of a C$2.40 billion shortfall. Read more here.

Summary statistics and links to the data files are on the Statistics Canada website here. Export and import price indexes can be found here.