Trade Deficit Narrowed to 19-Month Low in May

The deficit on goods trade increased to Euro 4.9 billion from Euro 3.9 billion billion.

Canada's trade deficit in May grew to $2.77-billion from $1.86-billion in April on a sharp rise in imports of airliners and gasoline while exports edged down, Statistics Canada said on Friday. Exports increased $84.5 billion or 8.8 percent.

Canada in May imported 2.9 percent more goods from countries other than the U.S., its leading trade partner.

Exports slipped by 0.1 per cent as shipments of motor vehicle and parts fell, in part because of disruption in the supply of auto parts from a plant in the United States. After struggling through the middle part of a year ago, exports had seen a revival in recent months due to a run-up in oil prices and stronger demand for non-energy exports.

Imports rose 1.7 per cent in May, after falling a month earlier. Meanwhile, exports of aircraft and other transportation equipment and parts rose strongly by 7.8 percent in the month on the back of exports of transportation equipment to Saudi Arabia. Volume rose sharply, as several Canadian refineries were temporarily shut for the month, while prices fell slightly.

Pushed by a 17.7 percent rise in orders of aircraft and other transportation equipment - the fifth consecutive monthly rise for that category - Canadian imports rose 1.7 percent to Can$51.1 billion in May, Statistics Canada said. "Higher imports from China (aircraft and other communications equipment), Belgium (pharmaceutical and medicinal products) and Germany were offset by lower imports from Mexico, among others".