Canada posts first trade surplus since early 2011

Canada recorded its first trade surplus since January in September 2011, as exports grew 4.2 per cent while imports declined 0.3 per cent, according to Statistics Canada.

The result? Despite lower imports of machinery and equipment, Canada’s trade balance with the world went to a surplus of $1.2 billion in September, a big improvement from a deficit of $487 million the month before.

Exports rose to $39.7 billion, the highest value since October 2008, StatsCan said, as six of seven sectors posted gains. According to StatsCan, imports fell to $38.5 billion, as volumes dropped 3.1 per cent and prices increased 2.8 per cent.

The agency said that the decline was driven by lower imports of machinery and equipment as well as automotive products, as both sectors suffered a decline in volumes.

Exports to the U.S. increased 5 per cent to $28.2 billion, the highest value since January 2011. Imports from the U.S. decreased 1 per cent to $23.8 billion. As a result, Canada’s trade surplus with the U.S. rose to $4.4 billion in September from $2.8 billion in August.

Partly offsetting the decrease in imports were gains in two sectors – energy products, and industrial goods and materials. Prices rose in both sectors.

Canadian exports to countries other than the U.S. rose 2.3 per cent to $11.5 billion, marking the fifth-straight monthly increase. Imports from countries other than the U.S. rose 0.7 per cent to $14.7 billion, StatsCan also said. As a result, Canada’s trade deficit with countries other than the U.S. fell to $3.1 billion in September from $3.3 billion in August, the lowest level so far this year.