Canada’s merchandise trade deficit widened to $1.9 billion in May as exports fell to their lowest level since July last year.
The result compared with a revised trade deficit of $1.3 billion for April, Statistics Canada said Wednesday. The initial reading for April had shown a deficit of $1.0 billion for the month.
BMO economist Shelly Kaushik said May saw Canada’s third straight monthly merchandise trade deficit, as lower energy prices and volatility in gold shipments dampened exports.
“Altogether, these results are in line with expectations for softer growth in the second quarter before further rate cuts support activity later in the year,” Kaushik wrote in a report.
For May, Statistics Canada said exports dropped 2.6% to $62.4 billion as exports of metal and non-metallic mineral products fell 7% in the month.
Exports of energy products fell 2.4%, due in large part to lower prices, while exports of aircraft and other transportation equipment and parts fell 11.5%.
Meanwhile, imports fell 1.6% in May to $64.4 billion as imports of metal and non-metallic mineral products fell 10% and motor vehicles and parts dropped 4.4%.
Imports of energy products fell 11.6%, while imports of metal ores and non-metallic minerals rose 27.3%.
In volume terms, total exports fell 1.7% in May, while total imports dropped 1.3%.
Regionally, Statistics Canada said the country’s trade surplus with the U.S. totalled $8.2 billion compared with $7.1 billion in April, while Canada’s trade deficit with countries other than the U.S. was $10.1 billion in May compared with $8.4 billion in April.
In a separate report, Statistics Canada said the country’s international trade in services deficit came in at $1.0 billion in May compared with $1.1 billion in April.
Exports of services rose 0.5% to $17.0 billion, while imports of services edged fell 0.2% to $18.1 billion.
When international trade in goods and services are combined, Canada’s total trade deficit with the world amounted to $2.9 billion in May compared with $2.5 billion in April.