The industrial capacity utilization rate in Canada showed a slight increase during the third quarter of the year, driven by improvements in both the manufacturing and natural gas sectors.
According to Statistics Canada, the country's overall industrial capacity utilization rate reached 79.7% from July to September, representing a 0.1 percentage point increase compared to the previous quarter. However, it was still 0.6 points lower than the same period last year.
The industrial capacity utilization rate measures an industry's actual output relative to its estimated potential output.
Manufacturing saw a modest rise in capacity utilization, with the sector's rate increasing by 0.3 points to reach 78.3%. This growth was primarily fueled by the strength of primary metal and metal product manufacturing.
Meanwhile, mining, quarrying, and oil and gas extraction experienced a 0.9-point increase in capacity utilization, reaching 76.7%. The sector rebounded from a slowdown in natural gas extraction during the second quarter caused by forest fires.
However, the electric power generation, transmission, and distribution industry witnessed a decline in capacity utilization compared to the previous quarter. This was attributed to a decrease in total electricity generation in Canada in August due to drier conditions and widespread droughts.
These figures provide valuable insights into the performance of Canada's industries and highlight the ongoing challenges and opportunities within the nation's economy.
