Canada: Trade deficit to narrow from $3.6bn to $3.3bn - TDS

Research Team at TDS, suggests that in Canada, international trade for July will likely be far more scrutinized for any further weakness in export activity after the revelation that net exports restrained GDP growth by nearly 6 percentage points (annualized) in Q2.

Key Quotes

“TD has an on-consensus call for the deficit to narrow from $3.6bn to $3.3bn. Nominal non-exports will be flattered by stronger industrial prices during the month so we will look to the volumes metric for further insight.

Labour productivity for Q2 is also scheduled to be released and should reveal a 0.4% q/q decline, effectively unwinding the improvement from the first quarter.”