Trade surplus shrinks in Sept.
Canada's trade surplus fell by $1.1 billion in September, its lowest level since January.
Statistics Canada said Thursday that the trade surplus with the world decreased to $4.5 billion in September from $5.6 billion in August.
Canadian exports declined for the second consecutive month, dropping one per cent to $42.5 billion. Prices fell while volumes remained flat.
Statistics Canada said the decline was led by industrial goods and materials, and automotive and energy products.
Meanwhile, Canada's imports rose by 1.9 per cent in September to $38.0 billion, as both prices and volumes increased.
The country's trade surplus with the United States — its biggest trading partner — fell to $8.3 billion from $8.7 billion in August on falling exports of energy products and automotive goods.
Canada's trade deficit with countries other than the United States expanded to $3.8 billion in September from $3.1 billion in August.
While the country is still in a trade surplus position, some economists sounded a warning about the future.
"With the bottom dropping out of commodity prices and U.S. spending hitting the wall, look for Canada’s trade surplus to deteriorate rapidly in the months ahead in both nominal and volume terms," said BMO Capital Markets economist Douglas Porter.
He added there is "the distinct possibility of some merchandise trade deficits in the months ahead — something Canada has not seen since the mid-1970s."
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