Canadian industries operated at 83.3 percent of their production capacity in the first quarter, up 1.5 percent from the previous quarter and the highest level since the third quarter of 2007.
Increases in capacity utilization in manufacturing, construction, and mining and quarrying more than offset the declines in oil and gas extraction and forestry and logging. Capacity utilization in electric power generation, transmission and distribution were unchanged.
The manufacturing industry drove the increase in the capacity utilization rate in the first quarter, operating at 83.4 percent of its capacity, up 1.5 percentage points from the previous quarter. The fabricated metal product manufacturing and food manufacturing industries were the primarily sources of that growth.
The capacity utilization rate rose in 15 of the 21 major manufacturing industries, representing approximately 80 percent of the gross domestic product in the manufacturing industry.
After falling for four consecutive quarters, the capacity utilization rate in the fabricated metal product manufacturing industry rebounded from 72 percent in the fourth quarter to 76.8 percent in the first quarter. The gain was attributable to increased production in most subsectors of fabricated metal product manufacturing.
The capacity utilization rate in the food manufacturing industry rose for a fifth consecutive quarter, reaching a record high 86.8 percent in the first quarter. Increased production in most subsectors of this industry accounted for the gain.
Capacity utilization in the machinery manufacturing industry rose 3.4 percentage points to 79.2 percent in the first quarter. This gain was attributable to higher production of most types of machinery.
The overall increase in the manufacturing sector was partially offset by decreases, particularly in chemical product manufacturing.
The utilization rate of chemical product manufacturers in the first quarter was 85.8 percent, down from 89.4 percent in the previous quarter. Lower production of pharmaceutical products and medication was the main reason for this decline.
The capacity utilization rate in construction rose for only the second time in nine quarters, from 84.5 percent in the fourth quarter to 86.6 percent in the first quarter. As in the previous quarter, residential construction and repairs were mostly responsible for the increase.
Due to an acceleration in support activities for mining and oil and gas extraction, the capacity utilization rate in the mining and quarrying subsector rose 5.9 percentage points to 79.4 percent in the first quarter. This gain followed a 4.5 percentage point increase in the previous quarter.
After edging up 0.1 percentage points in the fourth quarter, the capacity utilization rate in oil and gas extraction fell 0.3 percentage points to 80.8 percent in the first quarter. The decline was attributable to a lower volume of oil extraction, which more than offset increased gas extraction activities.
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