Machinery and equipment prices continue decline
Ottawa, ON -- The Machinery and Equipment Price Index compiled by Statistics Canada dropped 4.8% in the second quar...
Ottawa, ON — The Machinery and Equipment Price Index compiled by Statistics Canada dropped 4.8% in the second quarter of the year, compared to the first quarter. With 1986 having a basis of 100 on the index, the latest quarter was 131.8.
The domestic and imported components decreased 1.6% and 7.6%, respectively. Compared with the second quarter of 2002, the overall index fell 5.7%, with decreases in the domestic (-1.0%) and import (-9.7%) components.
On a quarterly basis, all industry groups decreased, with manufacturing (-5.0%), transport (-4.1%), agriculture (-5.9%) and community, business and personal services (-4.7%) contributing substantially. Manufacturing was led mainly by paper and allied products (-5.7%), chemicals (-5.2%) and by primary metals (-5.4%). In the transportation sector, the decrease was largely due to electricity (-3.6%), air transport (-7.0%) and telephone (-5.8%).
The year-over-year decrease was caused primarily by manufacturing (-6.2%), transportation (-4.7%), and agriculture (-6.4%).
In the second quarter, most commodities fell, in particular specialized industrial equipment (-5.6%), trucks (-5.8%), passenger automobile (-5.0%), farm and garden tractors (-8.1%), other agricultural machinery (-5.2%) and aircraft (-7.5%). These six industrial goods, which are more sensitive to the exchange rate, contributed substantially to the index decline.
The Canadian dollar strengthened for the second quarter in the row, having a major impact on the fall of the import component. The Canadian dollar was worth an average of 72.14 US cents in the second quarter, up 9.1% from the first quarter, and 12.9% from the second quarter of 2002.
The results were released by Statistics Canada on Aug. 14, 2003.