Trade balance slips back to deficit in October

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OTTAWA— The Canadian Press
Published Friday, Dec. 09, 2011 8:44AM EST
Last updated Friday, Dec. 09, 2011 8:51AM EST

Merchandise exports declined 3 per cent and imports rose 1.9 in October, as Canada’s trade balance slipped back into deficit.

Statistics Canada reports the country’s trade balance with the world fell into a deficit of $885-million in October from a surplus of $1-billion in September.

The agency says exports decreased to $38.4-billion in October, as both prices and volumes fell.

Industrial goods and materials, and energy products sectors led the decline, while automotive products was the only sector to record a gain during the month.

Imports reached a record high of $39.3-billion, as volumes increased 1.3 per cent, led by machinery and equipment, followed by energy and automotive products.

Imports from the United States rose three per cent to $24.5-billion, their highest value since October 2008, while exports fell 0.9 per cent to $27.6-billion.

As a result, Canada’s trade surplus with the United States narrowed to $3.1-billion in October from $4.1-billion in September.

Exports to countries other than the United States fell 7.9 per cent to $10.8-billion. Imports from countries other than the United States edged up 0.1 per cent to $14.7-billion.

Canada’s trade deficit with countries other than the United States increased to $4-billion in October from $3-billion.