Canadian industries operated at 80 percent of their production capacity in the second quarter, down from 81.4 percent in the previous quarter, according to Statistics Canada.
The decline in the industrial capacity utilization rate was widespread, with 19 of the 21 major groups in the manufacturing sector recording a lower rate. A decrease was also observed in every other non-manufacturing industry surveyed, except electric power generation, transmission and distribution.
Oil and gas extraction was the main source of the decline in the capacity utilization rate in the second quarter, with its rate down 4.2 percentage points to 73.9 percent, after an increase the previous quarter. A decrease in the volume of oil extraction following the wildfire in Fort McMurray was the main reason for the decline.
The construction capacity utilization rate fell for the fifth time in six quarters, down from 83.8 percent in the first quarter to 83.5 percent in the second quarter. The decrease in the second quarter was attributable to a widespread decline in activity in this industry.
In the electric power generation, transmission and distribution industry, the capacity utilization rate rose from 82.8 percent to 84.7 percent, as a result of increased production. The industry's rate has risen for two consecutive quarters, following three quarters of decline.
After three consecutive quarters of growth, the capacity utilization rate for manufacturing as a whole fell 1.2 percentage points to 82.2 percent in the second quarter.
The capacity utilization rate of fabricated metal products manufacturing continued to decline, falling 4.1 percentage points to 73.4 percent in the second quarter. This was the fifth decrease in six quarters. Lower production in most of the industry's subsectors accounted for the decline.
After four consecutive quarters of growth, the capacity utilization rate for transportation equipment manufacturing fell from 94.6 percent to 93.5 percent in the second quarter. A sharp decrease in motor vehicle and motor vehicle parts production was the main source of the decline.
The overall decrease in manufacturing was moderated by increases in primary metal manufacturing and, to a lesser extent, beverage manufacturing.
The capacity utilization rate in the primary metal manufacturing industry rose 3.1 percentage points to 78.2 percent in the second quarter, primarily as a result of increased production of non-ferrous metal.
