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Canadian exports show signs of strength amid U.S. growth, low loonie

The crude slump has helped depress the Canadian dollar and make exports cheaper.

OTTAWA – Canadian exports are finally beginning to show signs of a persistent recovery, with analysts cheered by healthy volumes in January that rose sharply thanks to the weak domestic dollar and continued U.S. growth.

Although Statistics Canada said on Friday the trade deficit had widened to $655 million from $631 million in December, markets paid much more focus on a 3.6 per cent begin volume.

“The long-awaited adjustment to the low dollar (and) firm U.S. consumer finally seems to be well arrived, and the strong U.S. jobs data suggests it may continue for a while yet,” BMO Capital Markets Chief Economist Doug Porter said inside a note to clients.

Analysts in a Reuters poll had predicted a shortfall of $1.05 billion. January marked the 17th consecutive monthly trade deficit, reflecting continuing economic damage caused by weak oil prices.

The crude slump, though, has helped depress the Canadian dollar making exports cheaper.

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