The merchandise trade surplus edged down for the second stratight month in July, Statistics Canada said today.

Imports increased at a slightly faster pace than exports, particularly from the United States,

StatsCan said Canadian companies exported $38.5 billion worth of merchandise, up 2.1% from June, and they imported $34.6 billion worth, a 3.1% gain.

The resulting merchandise trade surplus amounted to $3.9 billion in July, down from a revised $4.1 billion in June and $4.4 billion in May.

Exports were up for the third consecutive month, and imports for the second, marking a turnaround from the considerable downward movements earlier this year.

Canada’s merchandise trade surplus with the United States fell to $7.9 billion from $8 billion as imports rose faster than exports.

The merchandise trade deficit with all other countries widened to $4 billion from $3.9 billion in June.

July’s biggest boost came from machinery and equipment, where exports were up 4.9% to $8.1 billion.