The deficit shrank almost 14 percent from February to $40.4 billion, its lowest level in a year.
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Imports of services fell $0.2 billion to $41.7 billion due to a decline in transport services. 4 billion in March from CAD2.
The result came as the deficit for February was revised higher to $2.5 billion compared with the initial reading of a shortfall of $1.9 billion.
That’s a worrying sign because the cheap dollar during that period should have helped boost them.
The US trade deficit narrowed sharply in March as imports fell and the gap with China diminished, the Commerce Department reported on Wednesday (May 4).
The report showed a much more modest decrease in the value of exports, which fell 0.9 percent to $176.6 billion in March from $178.2 billion in February. Shipments declined in 10 of 11 sectors, led by motor vehicles and parts, consumer goods and metal and non-metallic products.
Bank of Montreal economist Benjamin Reitzes also saw little reason for optimism in the numbers.
“The details were absolutely bad, consistent with the headline, as exports dove 4.8 per cent, with every category lower except aerospace”, Reitzes said.
Data from Statistics Canada showed that Canada’s merchandise trade deficit with the world widened to a record CAD3.
She predicted exports to remain an important source of strength over the medium term with the USA economy on solid footing and the Canadian dollar expected to remain below 80 cents United States over the next couple of years. But Canada’s trade surplus with the United States narrowed to $1.5 billion in March, the lowest surplus since December 1993.
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The drop in the trade deficit to its lowest point in more than a year was driven by a 2.2 percent decline in exports and a 4.9 percent decrease in imports.
