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Canadian exports down 1.9% in April

Obviously, the 4.8% growth in March 2011 exports was not sustainable (especially since Canada’s #1 trade partner seems to be slowing down), and exports were of by nearly 2% (equality divided between volume and price). The worse sector down (36%) was the forever volatile aerospace sector. Aerospace sales rise and drop with little regards to the economic cycle. Overall (and because of aerospace) exports of machinery and equipment was down 8.9%. Exports of food were up, but exports of metal and minerals were down. Finally, energy exports were up, entirely because of higher volume (prices have been relatively constant).

On the import side there has also been a slide, although volumes are up 1.5%, price decline lead to an overall drop in value of 1%. The biggest loser was the automotive segment, down 9% (which is massive) and completed automobiles and chassis were down 22%. It seems that Japan’s damaged automotive sector is largely to blame here following the terrible earthquake and tsunami.

In a nutshell, Canada went from a marginal trade surplus, to a small ($4.8 bn) trade deficit, mostly with countries other than the US. Overall this is an inconsequential report, it seems that the strength of the CAD (now weaker) has had a very limited impact on Canada’s overall trade situation.

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