UPDATE 2-Canada August trade deficit widens, hitting Q3 growth

Tue Oct 8, 2013 9:47am EDT
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* Imports up 2.1 pct to record high, exports climb 1.8 pct

* Canada posts 20th consecutive trade deficit

* Trade surplus with United States grows to C$3.99 billion

By David Ljunggren and Louise Egan

OTTAWA, Oct 8 (Reuters) - Canada's trade deficit widened more than expected in August as imports soared to a record high, suggesting that exports were still not providing the much-desired boost to economic growth in the third quarter.

The trade deficit climbed to C$1.31 billion ($1.27 billion) as imports grew by 2.1 percent to set a new record and exports rose by 1.8 percent, Statistics Canada said on Tuesday.

The deficit - the 20th in a row - exceeded analysts' forecast of a C$700 million shortfall. Statscan revised July's deficit to C$1.19 billion from an initial C$931 million.

"The Canadian economy is still waiting for that growth rotation into exports," said Doug Porter, chief economist at BMO Capital Markets.   Continued...