OTTAWA – Canada’s merchandise trade surplus stood at $1.5 billion in August, the smallest monthly surplus of the year so far.
Statistics Canada reported the August result on Wednesday from a revised surplus of $2.4 billion for July, down from an initial reading for the month that showed a surplus of $4.1 billion.
According to Statistics Canada, total exports fell 2.9% to $65.4 billion in August, falling for the second consecutive month.
Exports of energy products fell 6% to $18.4 billion, while exports of crude oil fell 5.7%, mainly due to lower prices.
Meanwhile, total imports fell 1.7% to $63.9 billion, also a second consecutive monthly decline.
Imports of motor vehicles and parts fell 7.1% in August, with imports of passenger cars and light trucks falling 9.5% and imports of engines and parts falling 7.4%.
In volume terms, exports fell 1.3% in August, while imports fell 0.7%.
“With two months in, it still looks like trade will contribute to third quarter growth; however, monthly data is subject to material revisions that could alter the magnitude of support,” BMO economist Shelly Kaushik wrote in a report.
Regionally, Statistics Canada said the trade surplus with the United States was essentially unchanged at $10.7 billion in August, as exports to the United States fell 2.5% and imports from the main partner of Canada by 3.3%.
Canada’s trade deficit with countries other than the United States stood at $9.2 billion in August, compared with a deficit of $8.3 billion in July, the first increase in four months.
Exports to countries other than the United States fell 4.3% for the month, while imports from countries other than the United States rose 1.1% in August.
In a separate report, Statistics Canada said Canada’s international trade in services deficit for the month of August fell to $1.9 billion from a deficit of $1.6 billion in July, imports services increased by 2.1% to $14.5 billion and exports by 0.3% to $12.6 billion.
In total, Canada’s trade balance with the world, including goods and services, fell to a deficit of $369 million in August, the first deficit of the year, compared to a surplus of $740 million in July.
This report from The Canadian Press was first published on October 5, 2022.
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