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Trade Deficit Narrowed to 19-Month Low in May

08 July 2018

Analysts in a Reuters poll had predicted a shortfall of $2.05-billion.

Imports rose by 1.7 percent, pushed up by a 17.7 percent jump in shipments of aircraft and other transportation equipment and parts. "Year over year, total imports were up 3.5 per cent", said the federal agency.

"The U.S. trade deficit dropped in May to the lowest level in 19 months as U.S. exports rose to a record level", says ABC News. "Imports in the aircraft category, for their part, were lifted by the delivery of several airliners from the United States". After struggling through the middle part of a year ago, exports had seen a revival in recent months due to a run-up in oil prices and stronger demand for non-energy exports.

"Imports rose 1.7 per cent in May to $51.1 billion, with eight of 11 product sections increasing". Meanwhile, exports of aircraft and other transportation equipment and parts rose strongly by 7.8 percent in the month on the back of exports of transportation equipment to Saudi Arabia.

"A number of Canadian refineries were temporarily shut down in May, resulting in higher imports to meet domestic demand for refined petroleum products".

Exports were off slightly for the month, falling 0.1 percent to Can$48.3 billion, on a 3.6 percent decline in sales of motor vehicles and auto parts.

The United States took 74.2 percent of all Canadian goods exports in May. Imports increased $102.4 billion or 8.6%.

Canada posted a trade deficit in May of 2.77 billion Canadian dollars (US$2.11 billion), Statistics Canada said Friday.

Trade Deficit Narrowed to 19-Month Low in May