According to Statistics Canada, Canadian industries operated at 81.9 percent of their production capacity in the third quarter, up from 79.7 percent in the previous quarter. The increase was mainly attributable to the oil and gas extraction industry as operations resumed following the Fort McMurray wildfires.
The capacity utilization rate in the construction industry declined for the sixth time in seven quarters, falling from 83.7 percent in the second quarter to 83.4 percent in the third quarter. The decrease in the third quarter was the result of an overall decline in activities in the industry.
Following a decline in the second quarter, the capacity utilization rate of the manufacturing sector as a whole rose 0.7 percentage points in the third quarter to 82.6 percent. Non-durable goods manufacturing was the main source of the increase. In the third quarter, 9 of the 21 major manufacturing industries increased their capacity utilization, accounting for over half of the gross domestic product in the sector.
After decreasing for five consecutive quarters, the capacity utilization rate in the machinery manufacturing industry rebounded from 70.4 percent in the second quarter to 73.6 percent in the third quarter. The advance was attributable to an overall increase in production.
The capacity utilization rate of transportation equipment manufacturers fell from 92.2 percent in the second quarter to 90.5 percent. Decreased production of motor vehicles and motor vehicle parts and aerospace products and parts were the main source of this decline.