Canadian international trade deficit likely to have widened in October
Source: FxWire Pro - Commentary / 03 Dec 2019 09:24:51 America/New_York
Canadian international trade data for the month of October is set to release this week. According to a TD Economics research report, the international trade deficit is likely to have widen to CAD 2 billion in the month owing to a sizeable drag from motor vehicle exports.
The UAW strike and ensuring parts shortage weighed heavily on Canadian vehicle production, and preliminary figures show a pullback consistent with the 6 percent sequentially fell in U.S. auto imports.
The should add to a broader decline in export activity, with forestry products expected to edge lower in response to reduced activity at lumbemills, while lower oil prices will also act as a headwind to nominal exports.
“Imports should see a more modest decline consistent with softer US exports and sluggish domestic demand”, added TD Economics.© FxWire Pro 2019. All rights reserved. The FxWire Pro content received through this service is the intellectual property of FxWire Pro or its third party suppliers. Republication or redistribution of content provided by FxWire Pro is expressly prohibited without the prior written consent of FxWire Pro, except for personal and non-commercial use. Neither FxWire Pro nor its third party suppliers shall be liable for any errors, omissions or delays in content, or for any actions taken in reliance thereon.