Canada’s trade surplus with the rest of the world unexpectedly widened in September as the nation benefited from higher oil prices.
The country’s merchandise trade surplus increased to C$1.86 billion ($1.5 billion) from a revised C$1.51 billion in August, Statistics Canada reported Tuesday in Ottawa. That exceeds the C$1.6 billion consensus estimate for September in a Bloomberg survey of economists.
That’s a source of concern for the long-term sustainability of Canada’s trade performance. Total exports fell 2.3% in September, while imports dropped 3% due to the declining trade of cars amid a shortage of semiconductor chips.
“In sum, a wider surplus, but once again largely not for the reasons we want to see,” Andrew Grantham, an economist at Canadian Imperial Bank of Commerce, said in a report to investors.
Exports of motor vehicles and parts fell 18%, while imports from the sector dropped 14%. Excluding the industry, exports were down 0.5%. Crude oil exports, meanwhile, were up 7.2% in September.