Auto exports lowest since 1992; trade gap widening

OTTAWA — Both exports and imports fell in January, led by a sharp decline in automotive products trade.

According to Stats Canada overall exports fell 9 percent to $31.7 billion while imports fell 7.9 percent to $32.7 billion.

Although January’s decline in exports was widespread, nearly half was due to automotive products, which fell for a sixth consecutive month, reflecting mostly declining volume; while imports that month fell due to a combination of volume and price reductions. Since October 2008, imports have fallen 16.1 percent in current dollars, while volumes have dropped 14.6 percent during the same period.

Following a familiar trend in the last couple years, exports to the U.S. fell 8.9 percent to $23.3 billion, largely reflecting drops in automotive products and crude petroleum.

Exports to other countries dropped 9.3 percent while imports decreased 7 percent. 

Automotive Freefalling:

Dropping to their lowest level since January 1992, exports of automotive products dropped 34.5 percent to $3.0 billion.
Passenger autos, the largest contributor, collapsed by a whopping 44.1 percent to $1.4 billion as new vehicle sales in the U.S. fell to their lowest level since 1982.

Exports of machinery and equipment fell 6.8 percent, with aircraft and other transportation equipment leading the decrease.
Exports of industrial goods and materials contracted 6.1 percent to $6.9 billion, as well.

Import Drop Continues:

Automotive products dropped 22.6 percent to $3.9 billion, as sales remained weak and manufacturers cut back production.

Machinery and equipment was down 8.9 percent; while industrial goods and material decreased 9 percent to $6.8 billion, due to prices and volumes reductions.