According to Statistics Canada, Canadian industries operated at 86.0 percent of their production capacity in the fourth quarter, up from 85.1 percent the previous quarter. This was the sixth consecutive quarterly increase.
The mining, quarrying, and oil and gas extraction sector and the construction sector were the main sources of the increase.
The capacity utilization rate in construction rose for a sixth consecutive quarter, up from 89.5 percent in the third quarter to 91.0 percent in the fourth quarter. This gain was attributable to an overall increase in construction activity.
After a pause in the previous quarter, the capacity utilization rate in oil and gas extraction rose by 1.5 percentage points to 83.0 percent, because of an increase in the volume of oil extraction.
After a pause in the previous quarter, the capacity utilization rate for manufacturing edged up 0.7 percentage points to 86.1 percent in the fourth quarter, the highest level since the fourth quarter of 2000. Durable goods manufacturing industries were the main contributors to this increase.
Among transportation equipment manufacturers, the capacity utilization rate was 83.6 percent, up from 81.9 percent in the previous quarter. Motor vehicle manufacturing and motor vehicle parts manufacturing, as well as aerospace product and parts manufacturing, were the main contributors to the increase. Motor vehicle production recovered after a weak third quarter, which saw longer than usual maintenance shutdowns in assembly plants and changes to vehicle models being manufactured in Canada.
Capacity utilization rates in the primary metal manufacturing industry increased for the third consecutive quarter, up 2.6 percentage points to 82.7 percent. An overall rise in production in the industry's subsectors led to this increase.
The average capacity utilization rate of Canadian industries rose by 4.4 percentage points to 84.6 percent in 2017, after edging down 0.3 percentage points in 2016. The rise was mainly attributable to the rebound in the oil and gas extraction subsector.
In 2017, the annual average capacity utilization rate for manufacturing bounced back to 85.2 percent, after edging down 0.2 percentage points in 2016. The capacity utilization rate rose in 18 of the 21 major manufacturing groups.