Canada's Trade Surplus Shrank in September

Canada's trade surplus with the rest of the world decreased by 20% in September to C$4.5 billion (US$3.7 billion) from the previous month, Statistics Canada said Thursday. The government agency said exports declined and imports rose to mark the nation's lowest trade surplus since the start of 2008. After Canada posted a C$5.6-billion surplus in August, analysts had predicted only a slight drop to C$5 billion. Export volumes remained flat over August and September, but an overall 1% price drop in goods cut the total value of exports to C$42.5 billion. "The retreat was led by industrial goods and materials, automotive products, and energy products," Statistics Canada said in a statement. Canada's imports meanwhile increased 1.9% in September to C$38 billion, as both prices and volumes increased. September's gain marked the fifth increase in six months. Exports to the United States, Canada's biggest trading partner, also declined for the second consecutive month by 1.3% to C$32.1 billion, while U.S. imports remained unchanged at C$23.7 billion. Copyright Agence France-Presse, 2008