Weaker exports of cars and crude oil unexpectedly shifted Canada's merchandise trade balance with the rest of the world from a surplus of $2.2 billion in July to a deficit of $610 million in August, Statistics Canada said Friday.
The federal agency -- which also reduced July's surplus from a previously reported $2.6 billion -- says Canada's merchandise imports rose 3.9 per cent in August while exports fell 2.5%.
It says imports -- led by metal and non-metallic mineral products as well as energy products -- hit a record high $44.8 billion.
Exports, however, fell by $44.2 billion after nine of 11 sections declined. Fewer exports of cars and light trucks, as well as crude oil and crude bitumen, were responsible for much of the drop.
Imports from the United States rose 1.4% to $29.7 billion, while exports fell 2.5% to $33.3 billion, shrinking the trade surplus with that country to $3.5 billion in August from $4.8 billion in July.
Exports to other countries fell 2.5% to $10.9 billion and imports rose 9.3% to $15.1 billion, widening that trade deficit to $4.1 billion in August from $2.6 billion in July.
