According to Statistics Canada, Canadian industries operated at 81.2 percent of their production capacity in the fourth quarter, down from 81.5 percent in the previous quarter. This was the fifth decrease in six quarters, primarily due to declines in the mining and quarrying and manufacturing sectors.
Capacity utilization in mining and quarrying (excluding oil and gas extraction) fell 3.2 percentage points to 68.2 percent in the fourth quarter. Lower activity levels, as measured by gross domestic product, were observed in several industry subsectors.
After rising for three consecutive quarters, capacity utilization in the construction sector edged down to 90.8 percent in the fourth quarter. This decline is mainly attributable to reduced activity in engineering and other construction activities.
Year-over-year, the capacity utilization rate in manufacturing fell 1.4 percentage points to 77.7 percent in the fourth quarter, the lowest rate since the fourth quarter of 2010. Capacity utilization was down in 13 of the 21 major manufacturing industries, representing approximately 60 percent of gross domestic product in the manufacturing sector.
Capacity utilization among primary metal manufacturers decreased 4.7 percentage points year-over-year to 74.8 percent in the fourth quarter. The decline was attributable, in part, to lower sales following rail transportation disruptions in the fourth quarter.
Year-over-year, the capacity utilization rate of machinery manufacturers fell 4.6 percentage points to 75.2 percent. A slowdown in activity was observed in most industry subsectors.
The capacity utilization of petroleum and coal product manufacturers rose 8.4 percentage points year over year, as output was less affected by refurbishments and maintenance work at certain refineries than in the fourth quarter of 2018.