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Canada’s current account deficit declined in the third quarter, but fell short of analysts’ expectations, according to new data from Statistics Canada.

The drop in the current account deficit to $3.2 billion came as the goods balance returned to surplus in the third quarter. Yet, this was partly offset by a widening services deficit and a declining investment income surplus, StatsCan said.

“Higher exports of goods, paired with a decline in imports, pushed the goods balance into a surplus of $0.8 billion in the quarter, with the remainder of the current account posting a $4.0 billion deficit,” it reported.

Rising energy prices accounted for most of the swing in goods trade, StatsCan said.

At the same time, services trade was in deficit for the 10th straight quarter, and the investment income surplus narrowed by $2.6 billion to $2.1 billion in the quarter, it noted.

BMO Economics said that while the third quarter deficit was its smallest since the current account returned to deficit a year ago, the analyst consensus called for a modest surplus.

“This release fell short of expectations for a small surplus, suggesting downside risks to our call for modest growth in tomorrow’s Q3 GDP report,” BMO said.