Canada ekes out trade surplus in January

Canada recorded a much smaller-than-expected trade surplus of $0.12 billion in January, when imports hit a two-year high and exports stagnated, Statistics Canada data indicated Thursday.

The figure was considerably less than the $2.60 billion forecast by market operators. Statscan revised December's surplus down to $1.71 billion from an initial $3.00 billion.

Imports are in part being fueled by the strong Canadian dollar, which is currently trading near three-year highs against the U.S. dollar. The Bank of Canada says the value of the dollar is hurting exports.

Imports grew in January from December by 5.3 percent to $37.40 billion, their highest level since November 2008, as automotive shipments increased by 16.2 percent and energy products advanced 13.8 percent.

Exports edged up by 0.8 percent to $37.52 billion, when higher shipments of automotive, industrial and energy products just outweighed drops in exports of machinery and equipment as well as agricultural and forest products.