According to Statistics Canada, Canadian industries operated at 83.3 percent of their production capacity in the second quarter, up from 81.1 percent in the previous quarter. This was the highest capacity utilization rate since the second quarter of 2018.
Capacity utilization in mining and quarrying (excluding oil and gas extraction) rose 4.5 percentage points to 79.5 percent in the second quarter. Increases in support activities for mining and quarrying and oil and gas extraction, as well as in iron ore extraction and copper, nickel, lead and zinc ore extraction, were observed.
Capacity utilization in construction edged up 0.4 percentage points to 86.0 percent in the second quarter, the second consecutive quarterly increase.
Year-over-year, the manufacturing capacity utilization rate fell 1.4 percentage points. The capacity utilization rate was down year over year in 14 of the 21 major manufacturing groups, representing approximately three-quarters of the gross domestic product in the manufacturing sector. The manufacturing capacity utilization rate was 80.3 percent in the second quarter, the highest rate since the second quarter of 2018.
Capacity utilization in oil and gas extraction rose from 82.2 percent in the first quarter to 87.3 percent in the second quarter. This gain was driven by increased production of oil sands extraction in Alberta and coincided with the continued easing of temporary restrictions on production imposed by the provincial government in January. This was the highest capacity utilization rate recorded for oil and gas extraction since the second quarter of 1999. In the second quarter, there was a rebound in gross domestic product for oil and gas extraction (+6.7 percent) in conjunction with a relatively stable capital stock.
Conversely, capacity utilization in electric power generation, transmission and distribution fell 1.5 percentage points to 84.6 percent in the second quarter, following three consecutive quarterly increases. This decrease reflected a return to normal levels after an unusually cold winter.