(Bloomberg) -- Canada's merchandise trade deficit held near a record high in May, bucking forecasts the shortfall would narrow, as exports of machinery and metals declined.
The deficit of C$3.28 billion ($2.52 billion) followed an April figure that was boosted to a record C$3.32 billion, Statistics Canada said Wednesday in Ottawa. Economists surveyed by Bloomberg estimated the May deficit at C$2.7 billion, based on the median of 15 forecasts.
Exports fell 0.7 percent to C$41.1 billion and imports by
0.8 percent to C$44.4 billion. Both declines were the third in four months.
Statistics Canada also outlined how the oil industry responded to wildfires in Alberta, which knocked 1 million barrels a day of production offline. Energy exports rose 7.1 percent in May and imports climbed by 18.2 percent, the agency said, noting companies appear to have shifted their focus to exporting crude instead of refining it locally.
Bank of Canada Governor Stephen Poloz, who makes his next rate decision July 13, has signaled the economy may have shrunk in the second quarter because of the oil disruption and said output will likely rebound this quarter as production resumes. He is counting on non-energy companies to lead a recovery.
Non-energy exports fell 1.8 percent in May, but are up 2.3 percent from a year earlier. Exports of metals fell 5.4 percent on the month; machinery and equipment shipments were down 4.9 percent.
(Corrects year-over-year non-energy export figure in last paragraph.)
To contact the reporter on this story: Greg Quinn in Ottawa at gquinn1@bloomberg.net.
To contact the editors responsible for this story: Theophilos Argitis at targitis@bloomberg.net, Stephen Wicary at swicary@bloomberg.net.
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