Canada’s trade deficit narrowed more than expected in August from a record the previous month, as shipments abroad increased and imports fell.
The deficit narrowed to C$1.34 billion in August, from a revised $2.55 billion in July, which was the largest in records dating to 1971, Statistics Canada said today in Ottawa. Economists surveyed by Bloomberg predicted the gap would narrow to $2.3 billion from an initially reported July gap of $2.74 billion, according to the median of 16 estimates.
Exports in August rose 3.1% to $34 billion. Higher prices for metals such as gold and copper led a 5.8 percent gain in industrial goods to $8.02 billion, and the other consumer goods category jumped 27% to $1.62 billion on medical products. Export prices rose 0.2% and volumes rose 2.9%.
Imports fell 0.5% to $35.3 billion led by automotive products, which dropped 6.5 percent to C$5.84 billion. Import prices fell 0.8% and volumes rose 0.3%.
Canada’s trade surplus with the U.S., its largest trade partner, widened to $2.95 billion in August from a revised $1.53 billion the prior month. The first increase in the bilateral trade surplus since December 2009 was led by a 2.7% gain in exports and a 3.3% decline in imports, Statistics Canada said.
