OTTAWA, Oct 8 Reuters Canada recorded a biggerthanexpected trade deficit of C1.1 billion 806 million in August, its sixth consecutive monthly shortfall, as imports rose while exports declined, Statistics Canada data showed on Tuesday.
Analysts polled by Reuters had forecast a C500 million deficit in the month. July39;s trade balance was revised to a C287 million deficit from a surplus of C684 million initially reported.
Total exports fell 1 in the month, mainly on lower crude oil prices, and pulp and paper exports. Imports in the month were up 0.3, driven by motor vehicles and parts, as well as industrial machinery, equipment and parts, Statscan data showed.
By volume, exports rose 0.1, indicating softer prices of exported goods, and imports were up by 0.4.
We were not expecting a great month for Canada as energy and commodity prices were depressed in August, said Stuart Bergman, chief economist at Export Development Canada, adding the current rise in crude prices could be helpful for exports in the coming months.
The price of Brent crude has risen by almost 9 in the last 30 days, but they are still 14 below the peak seen last year.
A strong Canadian dollar also chipped away at the competitiveness of the country39;s exports, Bergman said.
Tuesday39;s trade report comes amid growing concerns of an economic slowdown in Canada. Data last month showed that the economy likely stalled in August and was on track to fall short of the Bank of Canada39;s growth forecast…