Canada: Trade balance to improve marginally to +C$0.2bn in April – RBC CM

Analysts at RBC Capital Markets see Canada’s nominal trade balance improving marginally to +C$0.2bn in April which would represent the fourth surplus in six months and is expected to come on a larger import (-2% m/m) than export (-1.2% m/m) decline.

Key Quotes

“Non-energy export volumes registered a 1.0% m/m gain in March, though they are still languishing at relatively depressed levels (-1.9% y/y). M&E and electrical equipment imports are a strong indicator of non-residential investment and should be closely watched to see whether their Q1 improvement persists.”