OTTAWA (Reuters) – Canada’s exports fell 2.9% in August, largely driven by lower crude oil prices, while imports fell 1.7%, resulting in the smallest trade surplus of the year, Statistics Canada said on Wednesday.
The country’s trade surplus with the world narrowed to C$1.52 billion ($1.12 billion) in August, well below analyst forecasts of a surplus of C$3.45 billion, and down from a revised C$2.37 billion in July.
Exports declined in seven of 11 product sectors and fell 1.3% on a volume basis, Statscan said. Export prices were down for the third consecutive month, led by a sharp decline in crude oil prices.
“This drop in (crude) prices coincides with increased global production and concerns about the future economic outlook,” the agency said.
On the import side, the decline was driven by motor vehicles and parts. Statscan noted that while auto production usually rebounds in August from July maintenance shutdowns, industry patterns continue to be impacted by supply chain issues.
The Canadian dollar was trading 0.7% lower at 1.3612 per U.S. dollar, or 73.46 U.S. cents as the greenback rallied against a basket of major currencies.
(Reporting by Julie Gordon in Ottawa; Editing by Andrew Heavens)
