Canada Trade Surplus Narrows in October

Canada's trade surplus narrowed to CAD 99 million in October of 2014 from revised CAD 307 million in the previous month. Exports edged up 0.1% to CAD 44.9 billion while imports increased by 0.5% to CAD 44.8 billion.
Statistics Canada | Carolina Cunha | 12/5/2014 2:25:49 PM
Exports of industrial machinery, equipment and parts advanced 8.0% to CAD 2.6 billion in October, the highest value since the record high in October 2008. Miscellaneous parts of machinery and equipment led the monthly increase, as exports rose 13.7% to CAD 815 million. This was followed by exports of the commodity grouping 'logging, mining and construction machinery and equipment,' which rose 32.9% to CAD 164 million. Overall, volumes increased 7.5%. 

Exports of farm, fishing and intermediate food products declined 8.6% to CAD 2.3 billion, as volumes fell 6.9% and prices 1.8%. Decreases in exports were recorded for most commodity groupings, including other crop products (-19.9%), canola (-17.0%), wheat (-6.4%) and other animal products (-33.8%).

Exports to the United States advanced 0.7% to CAD 33.9 billion, while exports to countries other than the United States declined 1.8% to CAD 11.1 billion. Exports to Hong Kong fell by half to CAD 268 million in October, following an increase of CAD349 million in September. Also declining were exports to Germany (-29.9%). Partially offsetting these decreases were higher exports to the United Kingdom (+10.2%).

Imports of consumer goods rose 3.1% to CAD 9.2 billion in October, led by the commodity groupings 'miscellaneous goods and supplies' (+11.0%) and 'clothing, footwear and accessories' (+5.4%). In the section as a whole, volumes rose 2.2% and prices 0.9%. Imports of aircraft and other transportation equipment and parts were up 12.4% to a record high CAD 1.7 billion; the previous record was in May 2008. The commodity grouping 'ships, locomotives, railway rolling stock, and rapid transit equipment' recorded the largest gain, up CAD 183 million to reach CAD 220 million in October. Also contributing to the section's gains were imports of aircraft (+21.2%).

Moderating the overall increase in imports, energy products decreased 10.1% to CAD 3.3 billion as volumes fell 6.1% and prices 4.3%. Lower imports of crude oil and crude bitumen (-18.5%) and refined petroleum energy products (-10.5%) were the main contributors to the decline.

Imports from the United States rose 1.0% to CAD 30.3 billion in October. Imports from countries other than the United States declined 0.5% to CAD 14.5 billion; the main contributors were Germany (-11.5%) and the United Kingdom (-11.2%). An increase in imports from China (+3.5%) moderated these declines.

Canada Trade Surplus Narrows in October