Rising energy, farm exports drive Canada’s trade surplus wider

Canada’s merchandise trade surplus unexpectedly widened in September as exports of wheat and crude oil rebounded.

The surplus rose to C$1.1 billion ($827 million), from a downwardly revised C$550 million in August, Statistics Canada reported Thursday from Ottawa. Economists projected exports would exceed imports by C$1.2 billion in September, from an initially reported surplus of C$1.5 billion the previous month.

The data show international demand for Canada’s resource exports remains solid, even amid mounting global economic headwinds. It could help to offset some weakness in other parts of the economy as activity stalls in coming quarters.

Total exports rose 1.3% in September, led by wheat, canola, and energy products. Total imports increased 0.4%, led by consumer goods, and industrial machinery, equipment and parts. In volume terms, exports rose 1.7% and imports fell 0.8%

Canada’s trade surplus with the US narrowed to C$9.8 billion on the month, the lowest since December 2021, from C$10.2 billion in August.