OTTAWA (CP) -- Merchandise exports and imports both advanced in February following three months of rapid declines, as Canada reported a trade surplus of $126 million -- up from a deficit of $1.2 billion in January.
Statistics Canada reports that exports rose 5.2 percent to $33.1 billion as all sectors increased and automakers resumed production.
The agency says imports were up 1.1 percent to $33 billion, led by machinery and equipment.
Exports of machinery and equipment and automotive products accounted for almost three-quarters of the gain in exports in February after leading January's decline.
The increase in total exports was due to a seven percent increase in volume while prices declined 1.7 percent.
The February gain in imports was primarily supported by machinery and equipment and automotive products, while weaknesses in energy products dampened the growth.
Overall, both price (with a 0.9 percent rise) and volume (up 0.2 percent) increased.
Exports to the United States increased five percent on the strength of automotive products and precious metals. Imports rose 3.7 percent, largely reflecting increases in automotive products and aircraft. As a result, Canada's merchandise trade surplus with the United States increased to $3.4 billion in February from $3 billion in January.
Canada's trade deficit with countries other than the United States narrowed to $3.3 billion in February from $4.2 billion in January, as exports increased 5.9 percent and imports decreased 3.1. Exports to China, Italy and Australia led the gain in exports to countries other than the United States.
