09:07 AM EST, 12/05/2024 (MT Newswires) -- Canada's merchandise trade deficit Thursday narrowed modestly and broadly in line with consensus expectations in October, moving to a shortfall of C$900 million, while consensus was for a C$1 billion deficit from C$1.3 billion in the prior month, said CIBC.

Exports were up by 1.1% month over month in nominal terms and outpaced a 0.5% month-over-month gain in imports, noted the bank.

However, the increase in exports was far from broad-based, as it was largely driven by a sharp rise in gold exports. Eight of 11 product sectors actually posted declines on the month, and export volumes were up by a more modest 0.4% as price increases led much of the nominal gain.

Statistics Canada stated that due to delays in the receipt of some import data, estimates were made and so that side of the balance could see more significant revisions than normal in the months ahead.

Including trade in services, which is now broadly in balance following revisions made at the time of the current account release, Canada's overall trade deficit narrowed slightly from C$1.1 billion in September to C$1.0 billion.