Canada posts trade surplus for second consecutive month in February
Canada posted a merchandise trade surplus for a second consecutive month in February, the first time that's happened since late 2016.
Statistics Canada said Wednesday the trade surplus for the month was $1 billion, down from a revised surplus of $1.2 billion in January, as both exports and imports fell.
TD Bank economist Omar Abdelrahman said the pullback in exports for February was not surprising following a strong January and unusually strong gains in the volatile aircraft category.
``Similarly, weakness was expected in auto production due to the global shortage in semiconductor chips,'' Abdelrahman wrote in a report.
However he said the overall outlook for Canadian trade, exports in particular, has brightened in 2021.
``Merchandise exports should remain supported by firm commodity prices/demand, the reopening of economies, and a strengthening economic outlook for Canada's largest trading partner, the U.S.,'' Abdelrahman wrote.