Canada’s September goods trade surplus rose to $5.4 billion, but export volumes fell as oil and gold drove the headline gain
OTTAWA — Canada posted a $5.4-billion merchandise trade surplus in September, the largest in more than four years, but the gain was driven by prices and a narrow group of exports while the physical volume of goods shipped abroad fell.
Statistics Canada said exports rose 0.2 per cent from August to $78.6 billion and imports fell 0.3 per cent to $73.2 billion. The surplus increased from a revised $5.0 billion in August.
Energy exports rose 8.2 per cent, led by a 10.2-per-cent increase in crude oil and bitumen and a 32.1-per-cent rise in natural gas. Metal and non-metallic mineral products also increased, helped by unwrought gold.
A narrow lift
The broader picture was weaker. Exports declined in eight of 11 product sections. Excluding energy and metal and non-metallic mineral products, exports fell 5.6 per cent. Total export volumes dropped 4.0 per cent, showing that higher prices and product mix lifted the dollar value even as fewer goods moved.
Exports to the United States increased 0.7 per cent, while imports from the U.S. rose 0.4 per cent. Canada’s merchandise trade surplus with its largest trading partner widened to $12.3 billion from $12.1 billion.
Exports to countries other than the United States fell 1.1 per cent for a second straight month. Their share of Canadian exports slipped to 29.8 per cent from 30.1 per cent, underlining the difficulty of diversifying trade while U.S. tariffs and countermeasures disrupt established supply chains.
Quarterly picture
For the third quarter, both exports and imports increased 0.2 per cent in current dollars. In volume terms, exports fell 0.6 per cent and imports declined 1.6 per cent. Canada’s quarterly merchandise surplus was essentially unchanged at $11.2 billion.
When goods and services were combined, Canada’s total trade surplus rose to $5.7 billion in September. Statistics Canada is scheduled to release October merchandise trade figures on Dec. 8.
