Canada Q1 capacity utilization rate 80.1% vs 79.8% expected

• Prior quarter 79.8% (revised to 79.7%)

The industrial capacity utilization rate is the ratio of an industry’s actual output to its estimated potential output. This is not a market moving release but it shows further improvement, which is what you generally see when the central bank eases monetary policy.

Further details:

The capacity utilization rate in the mining, quarrying, and oil and gas
extraction sector increased by 0.7 percentage points in the first
quarter to 76.7%. This rise coincided with an increase in activity in
the oil sands and in the support activities for mining and oil and gas
extraction.

The capacity utilization rate in the electric power generation,
transmission and distribution sector also increased, going from 83.2% in
the fourth quarter of 2024 to 86.1% in the first quarter. This increase
coincided with a rise in demand for electricity for heating purposes,
stemming from below-normal temperatures being recorded in certain parts
of the country over the course of the first quarter.

The seasonally adjusted capacity utilization rate in the manufacturing
sector slightly decreased by 0.2 percentage points to 77.9% in the first
quarter. This decline can mainly be attributed to petroleum and coal
product manufacturing (-6.9 percentage points) and fabricated metal product manufacturing (-3.1 percentage points).

This article was written by Giuseppe Dellamotta at www.forexlive.com.