Economic Indicators: Energy Trade Surplus Climbs C$1Bn To C$4.9 Bn

According to the Labour Force Survey, employment in Canada soared to 50.7K in February, miles above the 8K expected by consensus. The unemployment rate stayed put at 7%, however, as participation rate increased one tick to 66.7%. Job gains were registered in both the public and the private sectors (9.4K and 29.2K, respectively). Paid jobs (i.e., total less self-employed) sprang 38.6K. All of the job gains were in the service sector (59.3K). The goods sector shed 8K jobs, with losses in manufacturing (-25.6K) and natural resources (-6K) outweighing gains in construction (15.8K). Full-time employment progressed 34K.

In January, the merchandise trade deficit narrowed to C$0.24 billion from a revised C$0.33 billion (initially C$0.9 billion) the month before. The improvement was due to exports (+2.1%) outpacing imports (+1.9%). The energy trade surplus climbed C$0.1 billion to C$4.9 billion, its highest level since June 2012, thus helping counterbalance the C$0.03-billion increase in the nonenergy trade deficit. Exports of basic industrial goods, equipment, and consumer goods recorded advances as well. These more than offset pullbacks in autos (-7.6%) and metal ores (-16%). Imports were driven by healthy gains in energy and industrial machinery. The goods trade surplus with the United States jumped to C$4.25 billion, its highest point since March 2012. In real terms, exports and imports both rose 1.8%.

Separately, labour productivity edged up 0.1% in 2012Q4 while unit labour costs in the business sector swelled 0.6%.

In February, housing starts rose to an annual pace of 180,719 units, up significantly from the 158,998 units registered the previous month. In January, building permits rose 1.7% in dollar terms.

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