Canada’s trade deficit narrowed to $55 million in June from $1.1 billion in May, Statistics Canada said Wednesday.

Exports increased 2.3% to just under $29.3 billion in June, halting three consecutive monthly declines, while imports fell 1.3% to just over $29.3 billion.

The export increase was due to a substantial rise in shipments of energy products.

June marked the fourth consecutive decline in imports.

Declining imports of machinery and equipment, industrial goods and materials and other consumer goods more than offset increases in energy products, agricultural and fishing products, automotive products and forestry products.

Exports to the United States climbed 5.1 per cent because of higher crude oil shipments while imports fell 1.8 per cent, pushing that trade surplus to $3.1 billion from $1.7 billion in May.

Separately, StatsCan said contractors selling prices for new homes decreased 0.2% in June compared with a 0.1% decline in May.

The New Housing Price Index was down 3.3% from its level in June 2008, with the largest declines registered in Western Canada.

South of the border, the U.S. Commerce Department reported that the U.S. deficit in international trade of goods and services increased 4% to US$27.01 billion from a slightly revised US$25.97 billion in May.

IE