Canada: Trade deficit likely to print $2.7bn in August - TDS

Analysts at TDS expect a trade deficit of $2.7bn in August (consensus: -$2.6bn), leaving the deficit still wider than its Q2 average (-$1.9bn).

Key Quotes

“US import and shipment data and higher oil prices point to a moderate rise in energy exports, offsetting its prior decline. We also expect non-energy exports to post a solid comeback underpinned by solid US demand, though rapid currency appreciation in the prior two months poses a risk. One category driving growth is likely to be motor vehicles, based on advance US trade data, while we also see scope for rebounds across metal products, machinery, and electronics. Producer price data suggest the volumes should modestly underperform. A modest narrowing in August would be encouraging if driven by a rebound in non-energy exports, though net trade is still likely to contribute negatively to Q3 GDP.).”