Canada: Industrial Capacity Up 74.2%

Manufacturing of transportation equipment, metals and chemicals led Canadian industrial production capacity to increase in the first quarter, the third straight advance from a record low last year, Bloomberg reports.

The share of plant capacity in use rose to 74.2% in the January-March period from 71.3% in the previous quarter, the biggest increase in records dating to 1987, Statistics Canada said.

Economists in a Bloomberg survey predicted the rate would be 73.2%. Industrial production is rebounding from a record low 68.1%, set in the second quarter of last year when the economy was in recession, echoing recoveries in employment, output and inflation. The Bank of Canada led the Group of Seven (G7) nations with a policy rate increase June 1, citing “robust” domestic demand.

Manufacturing capacity use increased to 75% from 70.7% in the fourth quarter, Statistics Canada said. Transportation equipment increased to 63.6% from 60% in the fourth quarter and from a record low 47.3% in the same quarter last year.

Primary metals advanced to 86.4% from 76.9% and chemical factory capacity use rose to 82.1% from 76.7%, led by pharmaceuticals and petrochemicals.

Outside of manufacturing, mining capacity use rose to 66.2% from 58%, led by potash production. Construction rose to 71.8% from 70.2%, led by residential projects.