Canada's current account surplus widened in the second quarter to C$10.4 billion ($7.88 billion), from a revised C$8.25 billion in the first quarter, even though a big US acquisition by insurer Manulife led to large capital outflows, Statistics Canada said on Monday.
Analysts had forecast, on average, a surplus of C$13.0 billion during the April-June period, but said the report did not significantly change their outlook for second-quarter gross domestic product, to be released on Tuesday.
The Canadian dollar was unchanged at C$1.3152 against the US dollar, or 76 US cents after the figures. Analysts believe the data is unlikely to alter the Bank of Canada's view of the economy ahead of next week's interest rate decision.
"At the margin, growth estimates may be shaved for the quarter, though not by a meaningful amount," said Scotia Capital economist Mark Chandler.
"At 3.3 percent of GDP, Canada's current account (surplus) remains stellar, and any negative impact from today's report on the Canadian dollar should be short-lived,"
He added: "The Bank of Canada is unlikely to adjust growth expectations on this report. The nation continues to benefit from an export windfall that is helping to support output. A September 8th rate hike still seems most likely."
Canada's second quarter goods surplus jumped to C$20.04 billion - its second highest level - from C$16.46 billion in the first quarter.
But the capital and financial accounts showed that funds were flowing out of Canada for a fifth quarter in a row, with Canadian direct investment abroad up by a record amount. Manulife Financial Corp led with its US $13 billion purchase of Boston's John Hancock in April to become North America's No 2 insurer.
"The shortfall was concentrated in investment income flows rather than in net exports of goods and services," J.P. Morgan economist Ted Carmichael said.
"Consequently, the lower than expected second quarter current account surplus does not change our second quarter real GDP forecast of 5.0 percent (growth)."
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