Canada posts biggest trade surplus in 10 years as auto shipments recover

Analysts surveyed by Reuters had, on average, forecast a surplus of C$2.00 billion in October. The surplus was the largest since the C$2.12 billion seen in December 2011.
OTTAWA: Canada posted a trade surplus of C$2.09 billion ($1.65 billion)in October, the largest in almost 10 years, as imports and exports hit record levels on higher trade in motor vehicles, Statistics Canada said on Tuesday.

Analysts surveyed by Reuters had, on average, forecast a surplus of C$2.00 billion in October. The surplus was the largest since the C$2.12 billion seen in December 2011.

Exports jumped 6.4% to hit C$56.18 billion, with combined gains in the shipment of motor vehicles, parts and energy products accounting for almost 80% of total growth.

"While stoppages related to semiconductor chip shortages still affected Canadian assembly plants in October, they were less significant than those that occurred in September," Statscan said in a commentary.

The improving supply of chips also helped push imports up by 5.3% to hit C$54.09 billion.

Also Read:GM cites improved chip supply in raising financial guidance

Nearly all automakers, including GM, have been hit by a global semiconductor shortage, which began late last year when chipmakers shifted production to consumer electronics after auto plants were closed due to the pandemic. When the auto plants came back, chip makers didn't shift production back to auto chips, which unlike chips for computers and games, have to withstand extreme temperatures and rattling on the roads.

See More DetailsGrowth prediction for memory chip market halved for next year

It also predicted the overall semiconductor market to grow by 8.8 percent next year, "driven by double-digit growth of the sensors and logic category." It had previously said the market would grow by 10.1 percent.

See More Details

Follow and connect with us on Twitter, Facebook, Linkedin, Youtube