The Canadian Press

Canada’s merchandise exports rose 3.4% in October, led by a strong gain in exports to the United States which accounted for three-quarters of the increase.

Statistics Canada reports a trade surplus with the world of $428 million, as imports decreased 0.8% in October compared with a deficit of $850 million in September.

Exports increased by $1 billion to $31.1 billion, as a result of a 2.6% rise in volumes and a 0.8% increase in prices.

It was the second straight monthly increase in the value of exports and the fourth advance in five months.

Industrial goods and materials led the growth, representing more than half of the increase in exports.

Energy products, agricultural and fishing products, as well as automotive products also contributed to the gain, while lower exports of machinery and equipment slowed the increase.

Imports declined to $30.7 billion, as prices fell 1.2% and volumes inched up 0.3%.

It’s the third straight monthly decrease in the value of imports, and was mostly due to machinery and equipment followed by industrial goods and materials. Higher imports of energy products moderated the decrease.

Exports to the United States grew 3.6% while imports fell 3.1.

As a result, Canada’s trade surplus with the United States expanded to $3.4 billion in October from $2 billion in September.

Canada’s trade deficit with countries other than the United States was $3 billion in October compared with $2.9 billion in September, as exports grew 2.9% and imports rose 3.2%.