According to Statistics Canada, the Machinery and Equipment Price Index (MEPI) increased 1.0 percent in the third quarter, following a 5.4 percent decrease in the second quarter. The import component was up 1.1 percent over the third quarter, while the domestic component increased 0.4 percent.
All industries posted increases in the prices of machinery and equipment purchased in the third quarter. The all manufacturing industry (+1.1 percent) was the largest contributor to the quarterly gain in the MEPI. Finance, insurance and real estate (+0.6 percent), mines, quarries and oil wells (+0.9 percent), public administration (+1.0 percent) and other services excluding public administration (+1.0 percent) also contributed to the quarterly price increase.
Among commodities, logging, mining and construction machinery and equipment (+0.9 percent) contributed the most to the quarterly advance of the total MEPI. Other industry-specific machinery (+1.5 percent), computers and computer peripheral equipment (+0.8 percent) and aircraft and aircraft engines (+1.4 percent) also contributed to the quarterly gain.
In a year-on-year comparison, the total MEPI decreased 0.3 percent in the third quarter compared with the same quarter of 2015. This was the first year-over-year decrease since the fourth quarter of 2012.
The import component fell 0.5 percent while the domestic component was up 0.3 percent.