First Import Decline in Five Months Narrows Canada Trade DeficitGreg Quinn
Canada’s merchandise trade deficit narrowed in September as imports fell for the first time in five months, while exports of energy and consumer goods increased.
The deficit of C$1.73 billion ($1.32 billion) followed a revised C$2.66 billion shortfall in August, Statistics Canada said Wednesday in Ottawa.
Imports declined by 1.3 percent to C$46.2 billion, on a
14.3 percent drop in metal and non-metallic minerals and a 12.3 percent fall in energy products. Exports rebounded in September with a 0.7 percent rise to C$44.5 billion following a 2.9 percent decline in August.
The report adds to evidence the world’s 11th largest economy is stabilizing following the shock of lower oil prices that derailed output in the first half of the year. Gross domestic product has gained the last three months and employers have kept adding jobs this year.
Energy exports rose 3.7 percent and consumer goods shipments rose by 4.6 percent in September. Motor vehicle and parts exports fell 3.7 percent.
Exports rose 4 percent over the third quarter, faster than the 2.4 percent increase of imports. After stripping out short-term price changes to get a better measure of trade’s contribution to growth, exports rose 2.9 percent and imports declined 0.2 percent, Statistics Canada said.