According to Statistics Canada, Canadian industries operated at 86.1 percent of their production capacity in the first quarter, up from 85.6 percent in the previous quarter. This was the seventh consecutive quarterly gain and the longest sequence of increases since the third quarter of 2009 to the first quarter of 2011.
The increase in the first quarter of 2018 was mainly attributable to the construction sector and, to a lesser extent, the manufacturing sector.
The capacity utilization rate in the construction industry posted a seventh consecutive quarterly increase, rising from 90.8 percent in the fourth quarter to 92.4 percent in the first quarter. As in the previous quarter, the gain was due to a widespread increase in construction activity.
The capacity utilization rate of manufacturing edged up 0.4 percentage points in the first quarter to 86.1 percent. This was the seventh consecutive quarterly increase and the highest level since the fourth quarter of 2000. As in the previous quarter, durable goods manufacturing industries continued to be the main sources of the gain.
Among transportation equipment manufacturers, the capacity utilization rate rose from 83.6 percent in the fourth quarter to 85.6 percent in the first quarter, led by motor vehicle and motor vehicle parts manufacturing, and other transportation equipment manufacturing. This was the second quarterly increase following a large decline in the third quarter of 2017. Transportation equipment manufacturers have not had back-to-back increases since the first and second quarters of 2012.
The capacity utilization rate of the machinery manufacturing industry rose for the seventh consecutive quarter, up 2.5 percentage points to 90.2 percent in the first quarter on widespread production increases in every subsector of the industry.
Primary metals manufacturing, which includes aluminum and steel manufacturing, declined 1.1 percentage points to 81.2 percent in the first quarter, the first decrease in four quarters.