Canada November trade balance data:
- Prior was -$1.08B (revised to -$1.61B)
- Exports $48.7B vs $49.3B exp
- Imports $49.8B vs $51.0B exp
- Exports -1.4% m/m (non-energy exports flat)
- Energy exports -7.4% after pipeline rupture in US
- Imports -2.4%% m/m
- Surplus with the US $4.2B vs $5.2B prior
- Deficit with the rest of the world $5.3B vs $6.7B prior
The negative revision cancels out the positive headline but in the bigger picture, it's never a good sign when both imports and exports are falling but Statistics Canada notes that the declines coincided with a labor disruption on the railways. Still, it's a similar story globally as trade slows down. It's a story that's mixed in with the trade war and you hope it dissipates with a US-China phase one deal but it's tough to believe it will.
Here is why exports fell in the revision:
In the previous release, significant exports of fine art pieces being shipped on consignment were included in the international merchandise trade statistics for October. With additional imports and exports of this type occurring in November, Statistics Canada has determined that going forward only the portion of these shipments that are ultimately sold will be included in balance of payments basis statistics.
$500M of Canadian art?
