A truck carries a cargo container at the Port of Vancouver, on Oct. 14, 2022.DARRYL DYCK/The Canadian Press
Statistics Canada says the country posted a merchandise trade deficit of $1.1-billion in August as lower oil prices weighed on exports.
The agency said Tuesday the result compared with a revised deficit of $287-million in July. The initial reading for July released last month pointed to a surplus of $684-million for the month.
The result came as total exports fell one per cent to $64.3-billion in August.
Exports of energy products fell three per cent, as shipments of crude oil fell 4.1 per cent, mainly due to lower prices.
Total imports edged up 0.3 per cent in August to $65.4-billion as imports of motor vehicles and parts rose 2.4 per cent.
In volume terms, total exports edged up 0.1 per cent in August, while imports increased 0.4 per cent.
Olivia Cross, North America economist at Capital Economics, said the bright spot was the motor vehicle sector, where imports and exports both rebounded after larger than usual annual plant retooling shutdowns.
“In real terms, both exports and imports edged up in August but, after the sharp fall in imports in July, the latter will not be enough to prevent a slump over the third quarter,” Cross wrote in a report.
“That suggests net trade will boost GDP growth, however, the fall in imports suggests that domestic demand is fading. With the boost to exports from the oil sector already fading, the economy appears to be losing momentum.”
Regionally, Canada’s exports to the U.S. fell 4.3 per cent in August, while imports from the U.S. increased 0.9 per cent as the trade surplus with Canada’s largest trading partner amounted to $8-billion compared with $10.5-billion in July.
Exports to countries other than the U.S. rose 10.3 per cent in August, while imports from countries other than the U.S. fell 0.7 per cent. Canada’s trade deficit with countries other than the United States totalled $9.1-billion compared with $10.8-billion in July.
In a separate report, Statistics Canada said the monthly international trade in services deficit was $1.3-billion in August compared with $1.5-billion in July. Imports of services fell 0.6 per cent to $18.2-billion, while exports of services rose 0.5 per cent to $16.9-billion.
When international trade in goods and services are combined, the agency said Canada’s total trade deficit with the world was $2.4-billion in August compared with a deficit of $1.8-billion in July.