Falling oil prices took a bite out of exports in October as Canada's merchandise trade deficit increased to roughly $1.2 billion in October compared with $891 million in September, Statistics Canada said Thursday.
On Thursday, Statistics Canada reported a fall of total exports by 1.2 percent in October resulting in an increased trade deficit of a $1.2 billion, in comparison, the deficit was of $891 million during September. Notably, energy products exports fell 12.4 percent mainly due to the 15.4 percent plunge of crude oil price. Despite this unfavourable outcome, CIBC economist Katherine Judge noted the increase in export volumes as a positive indicator for manufacturing shipments and monthly GDP in her report. The Bank of Canada kept its key interest rate target unchanged due to the oil prices and the decline in business investment. Conversely exports of motor vehicles and parts increased 4.4 percent to $7.8 billion while total imports fell 0.6 percent to $50.5 billion in October. Â Â Â











