Exports & imports tumble in August: StatsCan

OTTAWA — Canada’s merchandise trade surplus with the world widened in August in the wake of a decline in exports and an even sharper decrease in imports, which had hit a record high the month before.

Exports decreased 1.8 percent to $38.5 billion as only two sectors — machinery and equipment and agricultural and fishing products — recorded gains, reports Stats Canada. Those increases were overshadowed by declines of industrial goods and materials, and to a lesser extent automotive products.
After peaking in July, imports fell 3.9 percent to $34.4 billion in August.

Despite the considerable appreciation of the Canadian dollar against the American dollar since the beginning of 2007, August’s decrease in imports was the result of widespread declines in all sectors except energy products and agricultural and fishing products.

Exports of industrial goods and materials contracted 9.0 percent to $8.8 billion. Although there was weakness in all areas of the sector, metal ores registered the largest decrease. Chemicals, plastics and fertilizers fell 4.3 percent to $2.8 billion.

Automotive products declined 6.0 percent to $6.2 billion, following July’s increase. The bulk of the decrease stemmed from passenger autos, while motor vehicle parts decreased 3.5 percent to $2.1 billion and trucks and other motor vehicles declined for the fifth month in a row, falling below the $1-billion mark for the first time this year.

Canadian production of lumber products has been curtailed by labor unrest in British Columbia, leading to exports falling by 1.0 percent to $2.4 billion, the fifth decrease in as many months.

Energy products slipped 0.3 percent to $7.2 billion, the third monthly decline.
Aircraft, engines and parts, however, climbed a whopping 37.1 percent to $2.1 billion, propelling total exports of the machinery and equipment sector upwards 6.6 percent to $8.4 billion.

Following a dip in July, agricultural and fishing products were up 5.4 percent to $2.9 billion, as canola exports soared 35.2 percent thanks to the burgeoning bio-diesel industry.

Auto Drags Down Imports:

Despite the surging Canadian loonie, imports decreased for the first time since May. Although the declines were widespread, the automotive products and industrial goods and materials sectors led the decrease with a tumble 8.1 percent tumble to $6.6 billion. The only sector to record an increase was agricultural and fishing products.

Motor vehicle parts also plunged 8.2 percent to $2.9 billion, falling to their second-lowest level in almost 10 years.

Machinery and equipment imports fell 2.8 percent to $9.7 billion. Aircraft and other transportation equipment were largely responsible, declining 12.1 percent to $1.5 billion and undermining the increases recorded in the previous months.

Imports of other consumer goods were down 2.7 percent to $4.4 billion, curbing last month’s increase.

Meanwhile, record imports of beverages as well as meat and meat preparations were responsible for a large portion of the increase in the agriculture and food sectors.