Record imports in May sent Canada’s trade surplus down sharply to $5.2 billion from the $7 billion seen in April, Statistics Canada said today.

Canadian companies imported $31.6 billion worth of merchandise in May, while the 7.8% increase from April was the biggest monthly gain since January 1997. Exports for May showed a modest rise of 1.3% to $36.8 billion.

“Despite the significant gain in imports, Canada’s cumulative trade surplus for January to May is nearly $4.5 billion higher than it was in the same five-month period last year,” Statistics Canada said.

Canada’s trade surplus with the United States dropped from $9.1 billion to $8.3 billion as imports grew strongly. Canadians purchased $21.8 billion from south of the border, up 6.7% rise from April. Exports to the United States surpassed $30.0 billion, as a result of higher exports of lumber, natural gas and trucks.