According to Statistics Canada, merchandise exports increased 1.2% in May while imports rose 1.1%. As a result, Canada’s trade deficit narrowed to $814 million in May from $857 million in April.
Industrial goods and materials led the increase in exports.
Exports of industrial goods and materials rose 4% to $9.5 billion in May on the strength of metals and alloys, chemicals, plastics and fertilizers. The gains in those sub-sectors resulted from higher exports of gold to the United Kingdom and potash to China.
Exports of machinery and equipment gained 4.8% to $6.3 billion, as volumes rose 5.3%. Exports of aircraft, engines and parts increased 34.7% to $1 billion.
Exports of automotive products also increased 3.9% to $4.9 billion in May.
Strong gains in most sectors were partially offset by a drop in exports of energy products, which fell 3.6% to $9.1 billion. Crude petroleum made up the bulk of the decline, falling 5.8% to $5.2 billion.
Imports increased in most sectors, including automotive products, which rose 3.6%.
Industrial goods and materials increased for the third consecutive month, rising 2.2% to a record high of $8.3 billion in May, as a result of higher prices.
Imports of precious metals and alloys, mainly gold and silver, accounted for more than half of this growth and reached a record high.
Imports of energy products fell 5.2% to $4.3 billion and imports of crude petroleum and other energy products decreased 7.2% and 2.8%, respectively.
Jennifer Harrison