OTTAWA, Oct 8 (Reuters) - Canada recorded a bigger than expected trade deficit of C$1.1 billion ($806 million) in August, its sixth consecutive monthly shortfall, as imports rose while exports declined, Statistics Canada data showed on Tuesday.
Analysts polled by Reuters had forecast a C$500 million deficit in the month. July's trade balance was revised to a C$287 million deficit from a surplus of C$684 million initially reported.
Total exports fell 1% in the month, mainly on lower crude oil prices, and pulp and paper exports. Imports in the month were up 0.3%, driven by motor vehicles and parts, and industrial machinery, equipment and parts, Statscan data showed.
By volume, exports rose 0.1%, indicating softer prices of exported goods, and imports were up by 0.4%.
Tuesday's trade report comes amid growing concerns of an economic slowdown in Canada. Data last month showed that the economy likely stalled in August and was on track to fall short of the Bank of Canada's growth forecast for the third quarter, supporting the case for a super-sized interest rate cut in October.
Energy products were the biggest drag on exports in August, mainly due to cheaper crude oil, as concerns over oil demand weighed on prices, the statistics agency said.
Exports of forestry products and building and packaging materials also fell, weighed down by lower exports of pulp and paper to China and the United States. The decrease in exports of pulp and paper may have been due to rail transport work stoppages in Canada in August, Statscan said.
Partially offsetting those declines, exports of motor vehicles and parts, and farm, fishing and intermediate food product categories rose in the month.
The motor vehicles and parts product category was the biggest contributer to the rise in total imports, coinciding with higher production of light trucks and sport utility vehicles in the United States in August, Statscan said.
Imports from the United States - by far Canada's largest trading partner - increased 0.9% in the month and exports were down by 4.3%.
Other contributers to the increase in total imports were industrial machinery, equipment and parts, while declines in consumer goods - mainly pharmaceuticals - partly offset the gains.
Overall, six of 11 export product sections posted declines and six of 11 import product sections rose.
($1 = 1.3640 Canadian dollars)
Reporting by Ismail Shakil in Ottawa; Editing by Dale Smith
