Canada records third straight month of trade surpluses for the first time in 2 years

Canada posted a third consecutive monthly trade surplus in January for the first time in more than two years as exports in the crucial auto sector rebounded, Statistics Canada said on Tuesday.

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The C$807 million ($602 million) surplus slightly exceeded analysts’ forecasts of a C$700 million positive balance. Statscan revised December’s surplus sharply lower to C$447 million from an initial C$923 million.

The last time Canada recorded trade surpluses for three months in a row was the period between July and September 2014.

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In January, exports rose by 0.5 percent while volumes expanded by 1.0 percent.

Exports of motor vehicles and parts rose by 7.7 percent after falling by 6.7 percent in December while shipments of canola jumped by 38.4 percent on demand from China. Imports slipped by 0.3 percent on lower imports of metal and non-metallic mineral products.

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Exports to the United States, which accounted for 74.6 percent of all Canadian exports in January, grew by 2.3 percent while imports rose by 0.3 percent.

As a result, Canada’s trade surplus with the United States grew to C$4.52 billion from C$3.82 billion in December.