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Machinery and equipment prices down in second quarter

Ottawa, ON -- Statistics Canada's Machinery and Equipment Price Index (MEPI) stood at 89.7 (1997=100) in the second...


Ottawa, ON — Statistics Canada’s Machinery and Equipment Price Index (MEPI) stood at 89.7 (1997=100) in the second quarter of 2007, down 4.1% from the previous quarter. The import component index fell 5.9%, while the domestic index edged down 0.6%.

Compared with the second quarter of 2006, the total MEPI was down 0.2%, as the import index decreased 0.4%, while the domestic index rose slightly by 0.1%.

In the second quarter, all industries recorded decreases in the prices of machinery and equipment purchased. Manufacturing industries (-4.1%) contributed significantly to the total MEPI quarterly decrease.

Among its subcomponents, the largest contributors to the quarterly decrease were transportation equipment manufacturing (-4.2%), primary metal and fabricated metal product manufacturing (-4.5%) and paper manufacturing (-3.0%). The second largest contributor to the total quarterly decrease was finance, insurance and real estate (-4.8%), with its subcomponent, real estate, rental and leasing services, falling 5.4%.

Among commodities, price decreases for automobiles, excluding passenger vans (-7.5%) and other industry-specific machinery (-5.1%) were the largest contributors to the quarterly decrease.

The U.S. dollar depreciated 6.3% against its Canadian counterpart in the second quarter of 2007.