Statistics Canada says trade deficit narrows to $1.5 billion in October

Statistics Canada says the country's merchandise trade deficit narrowed to $1.5 billion in October as exports improved and imports took a step back.

The agency says the shortfall was less than half the $3.4-billion deficit in September.

Economists had expected a deficit of $2.7 billion, according to Thomson Reuters.

Exports increased 2.7 per cent to $44.5 billion in October, following four consecutive monthly declines, as gains were made in nine of 11 sectors.

Prices were up 1.5 per cent and volumes increased 1.2 per cent.

Meanwhile, imports fell 1.6 per cent to $45.9 billion in October, mainly due to a drop in motor vehicles and parts.  Import volumes fell 3.9 per cent while prices rose 2.4 per cent.