08:54 AM EDT, 08/29/2024 (MT Newswires) -- Canada's current account deficit Thursday widened in Q2, in line with the higher goods trade deficit and a deterioration in the investment income balance, said CIBC.

The C$8.5 billion deficit, from a C$5.4 billion deficit in Q1, was worse than the C$6.0 billion shortfall expected by the consensus, noted the bank. The investment income balance moved from a surplus position into a slight deficit in Q2, as profits earned by Canadian direct investors abroad dropped off, while earnings of foreign investors on holdings of Canadian bonds rose.

Combined with the earlier reported deterioration in the goods trade balance, that offset an improvement in the services trade deficit.

Separately on Thursday, the payrolls data (SEPH) for June showed that 47,000 jobs were lost in that month, which more than erased May's increase, stated CIBC. That compared with a more modest 9,000 drop in jobs in the Labour Force Survey (LFS) when looking at the comparable measure that excludes self-employed.

That leaves the gap in employment levels between the two series intact, with SEPH employment 0.6% above year-ago levels versus 1.6% in the LFS survey.

Wage growth in the fixed-weight series eased off slightly to 4.2% y/y and is off of its peaks seen in 2022, but it remains elevated, added the bank.