Dip in imports widens trade surplus

Canada's trade surplus with the world widened to $799 million in January as rising exports outpaced a decline in imports.

Canada's merchandise exports grew by 0.5 per centin January, Statistics Canada revealed Thursday. That was a slower pace than in the previous four months, butthe trade surplus widened from $75 million to $799 million for the month becauseimports declined 1.7 per cent.

Exports increased to$33billion from$32.9billion. That was due to a 0.8-per-cent increase in prices because in volume terms, exports actually contracted by 0.3 per cent.

Although exports have been increasing for five consecutive months, the pace of growth slowed in January as declines in automotive products and machinery and equipment nearly offset gains in industrial goods and materials, and other consumer goods.

Following two months of increases, imports declined to$32.2billion from$32.8billion in December as a result of a1.2-per-centdecline in volumes and a0.6-per-centdecrease in prices.

With the United States alone, exports decreased 0.6 per cent while imports declined 0.5 per cent. As a result, Canada's trade surplus with the United States was$4.1billion in January, almost unchanged from$4.2billion in December.

Lower trade of automotive products were the main culprit.The sectorled the growth in December.