As prices for numerous items dropped, Canada’s September trade imbalance was marginally smaller at Can$1.3 billion (US$940 million), the country’s statistical agency reported Tuesday.
When reduced prices are taken out of the equation, the nation “saw decent growth on the export side of the ledger,” according to a research note by Marc Ercolao of TD Economics.
“Still, economic momentum in the broader economy is showing signs of cooling,” he said, noting that trade volumes “have effectively flatlined for the year.”
The September deficit was down from Can$1.5 billion the previous month, which Statistics Canada revised upward.
It said exports decreased in September for a third consecutive month, by 0.1 percent, led by lower prices, while imports fell 0.4 percent.
It noted lower exports of unwrought gold, and crude oil, which was partially offset by higher shipments of private jets to the United States, and higher exports of pulp and paper.
Imports of unwrought gold were also lower, while imports of refined petroleum energy products increased.
Trade with the United States — Canada’s largest trading partner — was up slightly in the month, resulting in a slightly widened trade surplus of Can$8.3 billion with its neighbor.
