Canada exports, imports slip

OTTAWA — After summer gains, Canada’s merchandise exports and imports both fell in August.

After two back-to-back months of increases, exports declined 5.1 percent (from $30.8B to 429.2B), as a result of a 5 point reduction in volumes, while imports fell 2.8 percent. Consequently, Canada’s trade deficit widened to $2 billion in August from $1.3 billion in July, reports Stats Canada.

Exports declined in all sectors, led by machinery and equipment, agricultural and fishing products, industrial goods and materials, and automotive products.

Following a 9.4 percent gain to $32.1 billion in July, imports declined to $31.2 billion, mainly due to a 2.6 percent dip in prices, mostly to machinery and equipment.

Interestingly, gains in imports of automotive products moderated the decline.

Since reaching record highs in July 2008, exports and imports have generally been trending downward.

Since July 2008, export volumes have fallen by 21.3 percent and prices have declined by 16.3 percent. Import volumes, meanwhile, have fallen by 18.1 percent while prices have decreased by 3.5 percent.

However, since April 2009, import volumes have generally been on the rise while import prices have fallen rapidly. During the same period, the decline in export volumes and prices has slowed down.
Specifically, exports to the U.S. fell 3.2 percent while imports declined 3.3 percent.

Exports to countries decreased 10.6 percent, while imports fell modestly at 2 percent.