Statistics Canada announces Imports and exports of merchandise goods both registered gains in March, halting two months of modest slowdowns. Canada's merchandise trade surplus with the world narrowed sharply as the value of imports rose at three times the pace of exports.
Exports increased 1.1 percent to $38.3 billion, while imports were up 3.6 percent to $33.1 billion. As a result, the trade surplus fell from a revised $5.9 billion in February to $5.1 billion in March.
An increase in machinery and equipment, primarily the result of strong aircraft exports, pushed up exports in March. Increases in imports of crude petroleum, machinery and equipment, as well as consumer goods and automotive goods returned imports to near-record levels.
After hitting a record high $41.3 billion in December 2005, exports had declined in January and February. Falling energy prices also contributed to the decline.
Imports, which rose rapidly last year as business investment boomed, slipped during the first two months.
Exports: Surge in machinery and equipment Outbound shipments of machinery and equipment,the biggest export sector, rebounded from two months of decline, surging 8.1 percent in March to more than $8.2 billion.
This returned export values of machinery and equipment to levels of December 2005 when they were the highest since January 2003, a very strong month for aircraft exports.
Imports: Demand for foreign machinery and equipment continues The growth in imports was widespread as six of the seven import sectors registered gains.
Imports of machinery and equipment recorded 2.9 percent growth in March, reaching $9.4 billion. Inbound shipments of aircrafts, engines and parts were the driving force, rising 20.3 percent as airlines continued their fleet expansion activities.
Within industrial machinery registered their fifth consecutive gain in March and increases were also recorded for excavating machinery, drilling and mining machinery and other industrial machinery.
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