The trade deficit was C$927 million ($881 million) in September, compared with a revised C$1.99 billion in August, Statistics Canada said. Exports rose 3.5 percent to C$30.3 billion, while imports fell 0.1 percent to C$31.2 billion.
The report suggests that international demand for Canadian goods is recovering, after exports fell to their lowest level in 11 years in May. The Bank of Canada has said the country’s first recession since 1992 ended in the third quarter.
Exports of automotive products rose 16 percent to C$4.2 billion in September, as manufacturers introduced new models and resumed production after summer shutdowns. Exports of industrial goods and materials advanced 6.3 percent, on higher exports of metals and alloys. Machinery and equipment exports were up 4.5 percent.
Exports of agricultural products fell 1.5 percent on the month, while energy product shipments fell 2.5 percent, the statistics agency said.
Canada’s trade surplus with the U.S., its largest trade partner, narrowed to C$2.06 billion from C$2.27 billion in August because of falling sales of energy products. Exports to other countries rose 12.4 percent, led by higher sales to Europe, the agency said.