Canada Industrial Capacity Rates Declines in 1Q to 80.9%
By Paul Vieira
OTTAWA--Canada's industrial capacity utilization declined in the first quarter from the previous quarter to reach a three-and-a-half year low, with the energy and mining sectors weighing on results.
Overall, industries in Canada operated at 80.9% of their production capacity in the first quarter, a 0.9-percentage-point decrease from a revised 81.8% level in the previous quarter, Statistics Canada said Friday. Market expectations were not immediately available.
The capacity-utilization rate represents a ratio of industry's actual output to its estimated potential output. It is also a gauge of how much slack, or spare capacity, there is in the economy.
The last time the capacity-utilization rate was this low was in the third quarter of 2015, when it reached 80.7%. In its most-recent business outlook survey, the Bank of Canada reported the share of firms that would have difficulty meeting an unanticipated increase in demand moved down to a low level after several quarters of elevated capacity pressures.
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