NEWS

Canada falls back into trade deficit

06/08/2012 10:43 EDT | Updated 08/08/2012 05:12 EDT

A drop in exports pushed Canada back into a trade deficit in April, as the economy shipped in $367 million more than it sent out during the month.

Canada has posted a trade surplus for five consecutive months prior to April, Statistics Canada reported Friday.

A drop in exports of industrial goods and materials, as well as machinery and equipment, pushed Canada's total exports down to $39.1 billion during the month. That compares with $39.5 billion worth of goods and services imported into Canada.

Exports make up about a third of Canada's GDP, and about three quarters of what Canada produces ends up in the United States.

Shipments to the U.S. fell 1.2 per cent to $28.4 billion in April, the fourth consecutive monthly decrease. Conversely, imports from the United States rose 1.3 per cent to $24.6 billion.

That pushed Canada's trade surplus with the United States, our largest trading partner, down from $4.5 billion in March to $3.8 billion in April.

On the flip side, Canada's trade deficit with countries other than the U.S. narrowed from $4.4 billion in March to $4.2 billion in April.

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