A shipping container is unloaded at the Port of Montreal in Montreal, Quebec, Canada, May 17, 2021. REUTERS/Christinne Muschi

OTTAWA, May 4 (Reuters) – Canada’s trade surplus with the world narrowed to C$2.49 billion in March from February, missing analysts’ expectations as imports rose more than exports, and February’s surplus has been revised upwards, according to Statistics Canada data released Wednesday.

Despite the setback, the data was broadly positive for the Canadian economy, with exports hitting a new high and record imports indicating buoyant consumer demand, economists said. Two-way auto trade was also strong, a sign that supply chain issues are easing.

“We may not have seen the big increase in the trade surplus that was expected, but today’s numbers are still positive from an overall economic growth perspective,” said economist Andrew Grantham. principal at CIBC Capital Markets, in a note.

Exports jumped 6.3% to C$63.63 billion, mainly due to high prices for energy products, Statscan said. Crude oil prices surged in March as Russia’s invasion of Ukraine led to global supply uncertainty.

The conflict in Ukraine has also helped boost exports of metallic ores and non-metallic minerals, including potash and iron ore.

It showed that Canada was “able to step up and fill in some of the gaps caused by the war in Ukraine,” said Stuart Bergman, chief economist at Export Development Canada. “I think this is a good sign for Canadian businesses going forward,” he added.

Bilateral trade in motor vehicles and parts, unadjusted for seasonality, rose to its highest level since August 2019, suggesting that supply chain bottlenecks that have plagued the North American manufacturing sector automobile are attenuated.

Overall imports, meanwhile, jumped 7.7% to C$61.14 billion, with gains in nine of 11 product categories, mainly energy products and consumer goods.

Canada’s trade surplus with the United States hit an all-time high of C$12.6 billion, while its trade deficit with the rest of the world hit a record high of C$10.1 billion.

The Canadian dollar was trading up 0.1% at 1.2826 per greenback, or 77.97 cents US.

($1 = 1.2811 Canadian dollars)

Reporting by Julie Gordon in Ottawa, additional reporting by Dale Smith in Ottawa and Fergal Smith in Toronto Editing by Paul Simao and Nick Zieminski

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