Dip in imports widens trade surplus

Canada's trade surplus with the world widened to $799 million in January as rising exports outpaced a decline in imports.

Canada's merchandise exports grew by 0.5 per cent in January, Statistics Canada revealed Thursday. That was a slower pace than in the previous four months, but the trade surplus widened from $75 million to $799 million for the month because imports declined 1.7 per cent.

Exports increased to $33 billion from $32.9 billion. That was due to a 0.8-per-cent increase in prices because in volume terms, exports actually contracted by 0.3 per cent.

Although exports have been increasing for five consecutive months, the pace of growth slowed in January as declines in automotive products and machinery and equipment nearly offset gains in industrial goods and materials, and other consumer goods.

Following two months of increases, imports declined to $32.2 billion  from $32.8 billion in December as a result of a 1.2-per-cent decline in volumes and a 0.6-per-cent decrease in prices.

With the United States alone, exports decreased 0.6 per cent while imports declined 0.5 per cent. As a result, Canada's trade surplus with the United States was $4.1 billion in January, almost unchanged from $4.2 billion in December.

Lower trade of automotive products were the main culprit. The sector led the growth in December.