Trade balance sinks to deficit in November

Canada's trade balance with the world went from a surplus of $503 million in October to a deficit of $344 million in November.

Gains in energy products helped push Canadian exports up 1.1 per cent during the month, Statistics Canada said Tuesday. But imports gained a robust 3.9 per cent, more than enough to negate the impact of rising exports.

Exports increased to $31.6 billion in November, marking the fifth increase in six months. Exports of energy products rose 6.2 per cent to $7.4 billion as prices increased 5.8 per cent.

But excluding energy, exports only increased 0.3 per cent. Export volumes were flat, meaning the entire 1.1 per cent gain was attributed to price increases.

Imports increased by $1.2 billion to $31.9 billion in November, almost offsetting the declines of the previous three months. It was only the third monthly import gain in 2009.

Surplus with U.S. narrows

Most import sectors posted gains, with automotive products, machinery and equipment, and energy products accounting for the bulk of November's increase. The exception was industrial goods and materials.

Exports to the United States rose two per cent while imports, which increased 3.8 per cent, accounted for almost two-thirds of the gain in overall imports. As a result, Canada's trade surplus with the United States narrowed to $3.2 billion in November from $3.5 billion in October.

Exports to countries other than the United States fell 1.2 per cent, while imports from these countries increased four per cent. Consequently, Canada's trade deficit with countries other than the United States widened to $3.6 billion in November from $3 billion in October.