Import-export gap widens slightly

OTTAWA — Canada’s merchandise trade surplus rose in August as exports advanced for the fourth consecutive month and imports fell.

Canadian companies exported merchandise worth $38.7 billion in August, up 0.3 percent from July, with strong gains in industrial goods and materials and automotive products, reports Stats Canada. On the other hand, imports declined 0.6 percent to $34.5 billion, following two consecutive monthly increases.

The resulting merchandise trade surplus amounted to $4.2 billion, compared with $3.9 billion in July.

The surplus with the U.S. Canada’s largest trading partner, moved up from a revised $8.1 billion to $8.2 billion. Both exports and imports declined, but imports fell more than exports.

The largest boost to exports in August came from industrial goods and materials, where exports advanced 2.8 percent to a record $8.3 billion. The strength came mainly from record-setting exports of chemicals, plastics and fertilizers — including a significant boost to China, Brazil and Colombia.

Exports of automotive products increased 2.6 percent following a decline in July. The bulk of the strength came from motor vehicle parts (+4.0%) and passenger autos and chassis (+2.6%).

Exports of agricultural and fishing products also grew 3.2 percent to $2.7 billion, primarily because of a 19.1 percent surge in wheat exports, says Stats Can. But exports of forestry products edged down 0.1 percent as lumber and sawmill products exports fell for the seventh straight month.

Imports: Auto Products Offset Moderate Gains:

Imports made moderate gains in five of seven major sectors in August, but they were offset by a large decline in automotive products, says the report.

Imports of automotive products fell 6.8 percent to $6.8 billion after advancing for two consecutive months, with a 12.3 percent surge in July. The bulk of the decrease came from motor vehicle parts (-9.0%). Imports of automotive products have been volatile month over month while the trend has been virtually flat since early 2005.

On the plus side, machinery and equipment imports rose moderately 0.8 percent to $9.6 billion, supported mostly by a jump in imports of aircraft and other transportation equipment.