Merchandise exports and imports both advanced in February following three months of rapid declines, Statistics Canada reported Thursday.

Exports rose 5.2% to $33.1 billion as all sectors increased and automakers resumed production. Meanwhile, imports increased 1.1% to $33.0 billion led by machinery and equipment.

This resulted in a small trade surplus of $126 million, up from a deficit of $1.2 billion in January, StatsCan said.

After leading the decline in January, exports of machinery and equipment and automotive products accounted for almost three-quarters of the gain in exports in February. The increase in total exports was due to a 7% increase in volume while prices declined 1.7%.

The February gain in imports was mainly supported by machinery and equipment and automotive products, while weaknesses in energy products dampened the growth.

Exports to the United States increased 5% on the strength of automotive products and precious metals. Imports rose 3.7%, largely reflecting increases in automotive products and aircraft.

As a result, Canada’s merchandise trade surplus with the U.S. increased to $3.4 billion in February from $3 billion in January.

Canada’s trade deficit with countries other than the United States narrowed to $3.3 billion in February from $4.2 billion in January, as exports increased 5.9% while imports decreased 3.1%. Exports to China, Italy and Australia led the gain in exports to countries other than the U.S.

New home prices drop

Separately, StatsCan said contractors’ selling prices decreased 0.7% between January and February, compared with a 0.6% decline a month earlier.

The New Housing Price Index was down 1.8% in February compared with the same month a year earlier, StatsCan said This was the second consecutive year-over-year decrease at the Canada level, and the largest decline since a 2% drop in September 1996.

IE