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Indicator Digest

Industrial Production
Measures all industrial production.

Main Indicator: Capacity Utilization Rate

Most Recent Release

March
11th, 2010
Actual Forecast Previous Revised Form
70.9% 70.2% 68.7% 67.5%

For 4th Quarter
Provided by: Statistics Canada
Official Release: Press Release

From the Release: "Canadian industries operated at 70.9% of their production capacity in the fourth quarter, up from 68.7% in the third quarter. Following a marginal gain of 0.2 percentage points in the third quarter, the gain in the fourth quarter was the first sizeable increase in overall capacity use since the first quarter of 2007.

In the manufacturing industries, capacity use rose from 67.7% to 69.7%. This was the second consecutive increase after nine quarters of decline. However, capacity use for manufacturers remained 3.8 percentage points lower than the rate of 73.5% in the fourth quarter of 2008. It was also well below the most recent peak of 84.9% in the first quarter of 2006.

All non-manufacturing sectors posted sizeable gains in capacity use in the fourth quarter, following widespread declines in the third quarter. Two sectors (forestry and logging, and mining) led the growth."

Table of Past Data

6/119/1212/123/166/119/1412/143/11
Actual79.8%78.9%77.4%74.7%69.3%67.4%67.5%70.9%
Forecast80.7%79.5%78.3%75.5%71.6%65.8%67.5%70.2%
Previous81.8%79.6%77.7%77.4%74.9%70.2%67.7%68.7%
Revised FromN/A79.8%78.9%N/A74.7%69.3%67.4%67.5%

Past Releases

December
14th, 2009
Actual Forecast Previous Revised Form
67.5% 67.5% 67.7% 67.4%
September
14th, 2009
Actual Forecast Previous Revised Form
67.4% 65.8% 70.2% 69.3%

For 2nd Quarter
Provided by: Statistics Canada
Official Release: Press Release

From the Release: "Canadian industries lowered their rate of capacity utilization by 2.8 percentage points to 67.4% in the second quarter, a much smaller decline than the decrease of 5.2 percentage points in the first quarter. However, industrial capacity use still reached its lowest level since the start of the data series in 1987."

June
11th, 2009
Actual Forecast Previous Revised Form
69.3% 71.6% 74.9% 74.7%
For 1st Quarter
Provided by: Statistics Canada
Previous Release: Press Release
March
16th, 2009
Actual Forecast Previous Revised Form
74.7% 75.5% 77.4% N/A

For 4th Quarter
Provided by: Statistics Canada
Official Release: Press Release

From the Release: "Canadian industries operated at 74.7% of their capacity in the fourth quarter of 2008, down from 78.1% in the third quarter. This was the lowest capacity utilization rate since the start of the data series in 1987.

The fourth-quarter decline was driven mainly by weak domestic and foreign demand for manufactured goods. Combined, three industries (transportation equipment manufacturing, construction and primary metal manufacturing) accounted for more than half of the decline."

 

December
12th, 2008
Actual Forecast Previous Revised Form
77.4% 78.3% 77.7% 78.9%

For 3rd Quarter
Provided by: Statistics Canada
Official Release: Press Release

From the Release: "Canadian industries reduced their use of production capacity for a fifth straight quarter in the third quarter, with a majority of sectors, especially the automobile and construction sectors, contributing to the downturn.

Industries operated at 77.4% of their capacity, down from 77.7% in the second quarter. This was the rate's lowest level since data were first kept in 1987. The rate in the third quarter of 2008 was 9.7 percentage points below its peak of 87.1% reached in the fourth quarter of 2000."

 

September
12th, 2008
Actual Forecast Previous Revised Form
78.9% 79.5% 79.6% 79.8%

For 2nd Quarter
Provided by: Statistics Canada
Official Release: Press Release

From the Release: "Industries operated at 78.9% of their capacity in the second quarter, down from 79.6% in the first quarter. Capacity utilization fell for a fourth straight quarter as a result of weak exports. The automobile and wood products sectors were especially hard hit by reduced foreign demand.

However, the drop in the rate, which affected all sectors in the second quarter, was less pronounced than in the two previous quarters."

 

June
11th, 2008
Actual Forecast Previous Revised Form
79.8% 80.7% 81.8% N/A

For Q1
Release from StatCan

Industrial grousps are not operating at anywhere close to where they can. Q1 capacity utilization rate fell to the lowest in 15 years, with the automotive sector as the major drag. All groups except for oil and gas extraction saw declining production capacity. The Manufacturing sector markedly reduced its capacity use, falling from 80.3% to 77.2%. The decline is indicative of slowing aggregate demand.