Services have posted a narrower deficit according to the latest month of data
Canada’s international trade in services recorded a modest improvement in October, with the surplus widening.
Following the data on goods, which revealed a swing to deficit as exports to the US saw a notable decline, Statistics Canada reported that services exports edged down 0.4% in October, while services imports fell by a steeper 1.2%. This divergence pushed the monthly services trade surplus to $0.5 billion, up from $0.4 billion in September.
The data show mixed performance across service categories. Commercial services exports, which include professional, management, and technical services, declined during the month, weighing on overall export totals. However, this weakness was partially offset by gains in travel and transportation services, which continue to benefit from cross-border mobility and activity levels.
On the import side, the decline was broad-based. Lower imports of both financial and non-financial commercial services contributed to the overall drop, alongside reduced travel-related spending by Canadians abroad. Transportation services imports edged higher, but not enough to offset declines in other categories.
Canada’s merchandise trade position weakened as exports to the United States declined and stronger import growth pushed the country into a monthly goods deficit, according to the latest release from Statistics Canada.
The stats for October 2025 reveal that while total exports posted a modest increase during the month, the overall picture was less supportive beneath the surface. Shipments to the US fell, weighing on overall export performance. At the same time, imports rebounded sharply following a September decline, reflecting firmer domestic demand for foreign goods.
The figures show that merchandise imports rose 3.4% in October, while exports increased by a slower 2.1%. This imbalance was enough to shift Canada’s trade balance from a $243 million surplus in September to a $583 million deficit in October.
This divergence between import and export activity may point to a Canadian economy that is still spending and investing, even as external demand shows signs of moderation.
Statistics Canada notes that monthly trade figures can be volatile and subject to revision, making it important to focus on broader trends rather than a single data point. Still, October’s results highlight the ongoing balancing act between domestic economic conditions and international trade performance.
When goods and services trade are combined, the overall trade balance for October was marginally negative.
