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Canada posts biggest trade surplus in 10 years as auto shipments recover

Kitco News

OTTAWA, Dec 7 (Reuters) - Canada posted a trade surplus of C$2.09 billion ($1.65 billion)in October, the largest in almost 10 years, as imports and exports hit record levels on higher trade in motor vehicles, Statistics Canada said on Tuesday.

Analysts surveyed by Reuters had, on average, forecast a surplus of C$2.00 billion in October. The surplus was the largest since the C$2.12 billion seen in December 2011.

Exports jumped 6.4% to hit C$56.18 billion, with combined gains in the shipment of motor vehicles, parts and energy products accounting for almost 80% of total growth.

"While stoppages related to semiconductor chip shortages still affected Canadian assembly plants in October, they were less significant than those that occurred in September," Statscan said in a commentary.

The improving supply of chips also helped push imports up by

5.3% to hit C$54.09 billion.

($1 = 1.2673 Canadian dollars)

Reporting by Julie Gordon and David Ljunggren in Ottawa Editing by Raissa Kasolowsky and Bernadette Baum
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