-- A surge in gold and oil exports, led by higher prices, saw Canada's trade balance "flip unexpectedly" to a surplus in March, said CIBC after Tuesday's merchandise trade data.
The $1.8 billion goods trade surplus compared with a $5.1 billion deficit in the prior month and consensus expectations for a $2.5 billion shortfall, noted the bank.
Total exports surged by 8.5% month over month, driven almost exclusively by metals and energy. Excluding those two areas, exports were up by a much more modest 1.1%.
Higher prices drove most of the surge in nominal exports, as in volume terms, overall exports weren't as strong, said CIBC.
In contrast to the strength in exports, imports fell on the month led by consumer goods, it noted.
"Overall, Tuesday's data confirm that higher global energy prices are helping Canada's nominal trade position, but not yet leading to much improvement in the volume of economic activity," according to the bank.