Canadian trade deficit likely to have widened on rise in imports in August

Canadian international trade data for the month of August is set to release tomorrow. According to a TD Economics research report, trade deficit is likely to have widened to CAD 1.5 billion in August, owing to higher imports that have yet to fully recover from a 4 percent fall in June.

“Non-energy exports will provide a partial offset on higher auto production alongside higher forestry exports, which will benefit from a recent pickup in US homebuilding activity. Meanwhile, lower crude oil prices will weigh on nominal export activity”, added TD Economics.