Canada's trade deficit widened in August as import growth outpaced that of exports.
Statistics Canada reports merchandise imports grew 0.7 per cent and exports increased 0.5, while Canada's trade deficit expanded to $622-million in August from $539-million in July.
Imports increased to $38.5-billion as prices were up 0.8 per cent and volumes decreased 0.1.
All sectors except energy products recorded price increases.
Exports rose to $37.9-billion, as prices increased 1.6 per cent while volumes declined 1.1.
Machinery and equipment, and industrial goods and materials were the main contributors to the gain in the value of exports. Both sectors were up for a fourth consecutive month.
Exports to the United States were down 2.3 per cent to $26.6-billion. Imports from the United States rose 2.0 per cent to $24.1-billion in August, the highest level since October 2008. Canada's trade surplus with the United States decreased to $2.5-billion in August from $3.7-billion in July.
Exports to countries other than the United States increased 7.9 per cent to a record high of $11.2-billion, a fourth straight monthly gain. Imports from countries other than the United States fell 1.4 per cent to $14.4-billion. Canada's trade deficit with countries other than the United States declined to $3.2-billion in August from $4.2-billion in July.
Imports of machinery and equipment gained 2.5 per cent to reach $10.5-billion in August, as a result of widespread gains. The increase in the sector was a result of higher prices. Imports of aircraft and other transportation equipment led the increase in value of imports.