According to Statistics Canada, Canadian industries operated at 85.0 percent of their production capacity in the third quarter, up from 84.3 percent the previous quarter. This was the fifth consecutive quarterly increase.
In non-manufacturing industries, increased capacity utilization in construction, electric power generation, transmission and distribution, and mining and quarrying were partly offset by a decline in oil and gas extraction, forestry and logging.
The capacity utilization rate in construction posted a fifth consecutive quarterly increase, rising from 87.6 percent to 89.1 percent in the third quarter following a period of decline. This gain was the result of an overall increase in construction activities.
The manufacturing industry operated at 85.2 percent of its capacity in the third quarter, up slightly from the previous quarter. This followed four consecutive increases since the third quarter of 2016.
The capacity utilization rate rose in 13 of 21 major manufacturing groups, representing approximately half of the manufacturing sector's gross domestic product.
Capacity utilization in the machinery manufacturing industry continued to grow, up 2.7 percentage points to 91.3 percent in the third quarter as most subsectors increased production.
The capacity utilization rate for transportation equipment manufacturers fell from 86.6 percent to 83.0 percent, due to a drop in the production of motor vehicles and motor vehicle parts. This marked the fifth decline in six quarters.