Trade surplus hits $428M in October

A spike insalesto the United States helped drive Canadian merchandise exports up 3.4 per cent in October, Statistics Canada said Thursday.

Imports decreased 0.8 per cent for the month, pushing Canada's trade surplus with the worldto$428 million. That compared with a deficit of $850 million in September.

Exports increased by $1 billion to $31.1 billionon the backof a 2.6 per centrise in volumes and a 0.8 per centincrease in prices, the federal statistical agency said.It was the second consecutive monthly increase in the value of exports and the fourth advance in five months.

Imports declined to $30.7 billion, as prices decreased 1.2 per centwhile volumes inched up 0.3 per cent. It was the third consecutive monthly decrease.

Industrial goods and materials led the growth, representing more than half of the increase in exports. Energy products, agricultural and fishing products,and automotive products also contributed to the gain. Lower exports of machinery and equipment slowed the increase.

Gold powers gain

"Gold was a big story, as precious metals exports jumped 34 per centto a record $1.3 billion and alone accounted for roughly a quarter of the improvement," BMO economist Doug Porter said.

To the United States alone, exports grew 3.6 per centwhile imports fell 3.1 per cent. As a result, Canada's trade surplus with the United States expanded to $3.4 billion in October from $2.0 billion in September. The October increase in exports to the United States was the third advance in five months.

Canada's trade deficit with countries other than the United States was$3.0billion in October, compared with$2.9billion in September, as exports grew2.9 per centand imports rose3.2 per cent.

"The persistently strong loonie that has been making headlines for some time seems almost to be an afterthought in the latest trade data," TD Bank economist Francis Fong said. "The unexpected strength of the past two reports certainly points to further improvement in the broader Canadian economy in October."