Canada February trade balance +2.66B vs +$2.90B expected

Full

• Prior was $2.62B (revised to $3.12B)
• Imports $56.08B vs $54.68B expected
• Exports $58.75B vs $58.05B expected
• Trade surplus with US the largest since 2005 at $9.7B
• Full report

Both imports and exports were high, which is a sign of a strong economy despite February lockdowns. The revision to the January prior makes it the best reading since 2009. I expect many more strong readings in the months ahead, particularly on the export front due to high commodity prices.

The details of the report show a jump in imports of metal and non-metallic mineral products (+14.3%) ad the largest boost while imports of consumer goods were also strong (+2.5%). Export gains were more widespread with 8 of 11 product sections up more than $100m in the month. The largest was energy products, which rose 7.8% to a record $15.4B.

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