Exports rose at their fastest pace in more than a year in January, Statistics Canada said on Tuesday.
Reversing a downward trend for most of 2007, Canadian companies exported $38-billion worth of goods in January, a 3.6% rise from December.
That increase was due more to a 4.2% jump in export prices, as the volume of goods shipped out of the country fell 0.6%. The value of imports rose 1% to $34.7-billion.
As a result, Canada's trade surplus with the world rose to $3.3-billion from a nine-year low of $2.3-billion in December.
Economists had been expected the surplus to rise more modestly to just below $3-billion.
The numbers point to a dichotomy in the Canadian economy. Booming commodity prices are pushing the value of the oil, precious metals and agricultural products that Canada exports through the roof. At the same time, a strong Canadian dollar and floundering U.S. economy continue to weigh on the manufacturing sector, with auto exports remaining particularly weak.
"Although better than in the prior month, January's trade numbers point to the vulnerability of the Canadian manufacturing sector to a U.S. slowdown," wrote CIBC World Markets economist Krishen Rangasamy in a morning commentary.
"Trade is still likely to be a major source of weakness for Canadian growth this year with the risks largely skewed to the downside in the face of weakening U.S. growth and a high Canadian dollar," said RBC assistant chief economist Paul Ferley.
Stumble It!
We have come full circle, and are now heading back to "hewers of wood and drawers of water".