September 10, 2015 / 12:45 PM / 4 years ago

Canada industry capacity use falls again in second quarter

OTTAWA (Reuters) - Canada’s industrial capacity use in the second quarter fell for the second consecutive quarter, with manufacturing and the mining and oil industries leading the decline, data from Statistics Canada showed on Thursday.

Capacity utilization was 81.3 percent, short of economists’ expectations for 81.7 percent. The first quarter was revised slightly lower to 82.6 percent.

Capacity use in the mining, quarrying, and oil and gas extraction sector fell amid lower demand for support industries. Decreased oil extraction also more than offset an increase in gas extraction.

Oil prices have slumped over the past year, helping to put oil-exporting Canada into a mild recession in the first half of 2015.

The capacity utilization rate declined in 13 of the 21 major groups in the manufacturing sector, making up about 75 percent of the sector’s gross domestic product. A decline in capacity use in the durable goods industries was the main driver of the overall manufacturing sector’s decline.

Reporting by Leah Schnurr; Editing by Chizu Nomiyama

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