The Canadian trade balance returned to surplus in January due to a sharp decline in imports led by the automotive sector.

Statistics Canada reported yesterday, Tuesday, that the country recorded a trade surplus of 2.6 billion Canadian dollars (2 billion dollars) from a sharply adjusted deficit of 1.6 billion Canadian dollars in December, reaching the widest monthly surplus since 2008. Imports fell by 7.4% due to a 14% decrease in shipments to Canada of cars and parts.

Statistics Canada said supply problems are partially responsible for the decline in the automotive sector, but the import decreases were widespread enough to affect 10 of 11 product categories.

Exports fell by only 0.2% during the month driven by rising energy prices, and also fell by 2.7% excluding energy.