09:15 AM EST, 11/28/2024 (MT Newswires) -- Canada's current account deficit narrowed in Q3, noted CIBC.

Thursday's C$3.2 billion deficit was C$1.5bn narrower than in Q2, which was revised to show a C$4.7 billion shortfall versus the C$8.5 shortfall previously, with the consensus for the quarter at a $8.7 billion deficit, said the bank.

The narrowing reflected an increase in the investment income surplus, from C$1.7 billion to C$4.3 billion, as profits earned by Canadian direct investors on assets internationally increased. That was against the earlier reported widening in the goods trade deficit and narrowing in the services surplus.

Separately, the payrolls data (SEPH) for September showed a 57,000 reduction in headcounts on broad-based weakness, with declines seen in nine sectors, led by retail trade (-13,000), accommodation/food services (-9,000), and other services excluding public admin (-7,600), pointed out CIBC.

That leaves employment only 0.5% above year-ago levels, in comparison with 1.8% for the comparable Labour Force Survey measure. The ratio of job openings per unemployed person was a tick higher at 0.37 but remains low and consistent with ample labor market slack.

The volatile fixed-weight wages measure decreased to 5.2% year over year, leaving it elevated, added the bank.