August 31, 2015 / 12:41 PM / 3 years ago

Canada second quarter current account deficit narrows to C$17.40 billion

OTTAWA (Reuters) - Canada’s current account deficit narrowed slightly in the second quarter of 2015 to C$17.40 billion ($13.18 billion) on more favorable trade in goods and services, Statistics Canada said on Monday.

Production Associates inspect cars moving along assembly line at Honda manufacturing plant in Alliston, Ontario March 30, 2015. REUTERS/Fred Thornhill

The deficit was greater than the C$16.90 billion shortfall predicted by analysts. Statscan revised the first quarter deficit up to C$18.15 billion - the second highest on record - from an initial C$17.47 billion.

A strong gain in exports in June helped trim the trade in goods deficit to C$6.74 billion from C$7.07 billion in the first quarter.

Overall exports of goods edged up C$680 million to C$128.83 billion, largely due to higher prices. Total imports of goods rose by C$350 million to C$135.57 billion, in part due to higher shipments of motor vehicles and parts.

The deficit on trade in services shrank by C$240 million to C$5.49 billion as non-residents increased their spending in Canada. This reflected the higher number of foreign travelers, Statscan said.

The deficit on cross-border investment income flows dropped to C$4.00 billion from C$4.19 billion as earnings by Canadian investors on their holdings of foreign securities advanced for the 11th successive quarter.

Reporting by David Ljunggren Editing by W Simon

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