Industry capacity utilization falls in 2Q

OTTAWA — All sectors except food manufacturing saw their capacity use fall, albeit at a slower pace compared with the first quarter, reports Stats Canada.

Of the 21 major industries in the manufacturing group, 20 used less of their production capacity in the second quarter, reflecting the weak demand for goods.

Both non-durable and durable goods-producing industries, particularly primary metal, fabricated metal product, machinery manufacturing industries and, to a lesser extent, transportation equipment industry (all representing over a third of Canadian manufacturing) contributed to the lower rate.  

Utilization in the transportation equipment industry fell 0.9 percentage points to 46 percent, after decreasing 12.1 points in the first quarter of 2009 and 9.2 points in the fourth quarter of 2008.

The primary metal manufacturing industry led this decline, falling Capacity 61.9 percent, the lowest level on record and well below the peak of 97.6 percent in the third quarter of 2008.

In the non-manufacturing group, capacity use fell in all sectors with the most notable drop posted by the mining and oil and gas extraction sector.

The mining sector operated at 50.2 percent of its production capacity in the second quarter, down slightly from the first quarter, while the oil and gas extraction sector cut capacity use by 1.9 percentage points to 76.1 percent.

Meanwhile, in the food manufacturing industry, industrial capacity utilization settled at 81.5 percent in the second quarter, remaining unchanged from the first quarter.