OTTAWA, Jan 7 (Reuters) - Canada recorded a ninth consecutive monthly trade deficit in November, albeit smaller than expected as exports rose faster than imports, data showed on Tuesday.
Total exports rose 2.2% in November, helped by gains in a broad section of product categories, while imports were up 1.8%, led by consumer goods and chemical, plastic and rubber products, Statistics Canada said.
As a result, Canada's trade deficit narrowed to C$323 million ($225.6 million) from a revised C$544 million deficit in October. Analysts polled by Reuters had expected a C$900 million deficit in November.
The trade surplus with the United States, by far Canada's largest trading partner, widened to C$8.2 billion from C$6.6 billion in October.
The surplus with the U.S. nearly offset Canada's trade deficit with all other countries - which widened to C$8.5 billion in November from C$7.2 billion - underscoring the potential impact of the U.S. President-elect's threat to impose tariffs on Canadian goods.
The Canadian dollar slightly weakened after the trade data with the currency trading up 0.13% to 1.4311 against the U.S. dollar, or 69.88 U.S. cents.
The rise in total exports was led by a second consecutive monthly increase in consumer goods, mainly due to large shipments of medicaments sent to the United States. Miscellaneous goods and supplies also contributed, mainly because of higher exports of battery packs for electric vehicles to the United States, Statscan said.
Overall, nine of 11 export product sections rose in the month.
The largest contributors to the monthly increase in imports were consumer goods, basic and industrial chemical, plastic and rubber products, and industrial machinery, equipment and parts.
Argentines were all smiles at this Nike store in Santiago, Chile, where some have flocked to buy shoes and other items for much cheaper than at home.
Due to implementation of new software at the Canada Border Services Agency, trade data for October and November include a greater degree of estimation. Trade values were also impacted by the depreciation of the Canadian dollar in those months.
The Canadian central bank, concerned about economic growth, has sharply lowered borrowing costs since June, including back-to-back 50 bp interest rate cuts.
Money markets are seeing over 70% chance of another 25 basis point rate cut later this month. .
Data last month showed the Canadian economy likely contracted in November weighed down by declines in sectors including mining, quarrying, and oil and gas extraction and transportation and warehousing.
($1 = 1.4315 Canadian dollars)
Reporting by Ismail Shakil and Dale Smith; Additional reporting by Promit Mukherjee; Editing by Ros Russell
