Canada Industrial Capacity Use Falls on Lower Crude Production

Canadian industrial companies’ use of their production capacity decreased in the second quarter as crude producers scaled back output.

The share of plant capacity in use fell to 80.6 percent in the April-June period from a revised 80.8 percent in the first quarter, Statistics Canada said today in Ottawa. The result matched the median estimate in a Bloomberg economist survey with 11 responses.

Capacity use at oil and gas extraction companies dropped 1.4 percentage points to 85.7 percent. Mining and quarrying companies use fell 0.1 percentage point to 65.5 percent.

Manufacturing capacity use as a whole fell to 79.2 percent from 79.4 percent. The main factor was a 7.2 percentage-point decline in the primary-metals industry to 72.5 percent, bringing it to the lowest since the third quarter of 2009, according to Statistics Canada.

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