MRO Magazine

Machinery and equipment prices down 7% from year ago

Ottawa, ON -- The Machinery and Equipment Price Index for the first quarter of 2004 released recently by Statistic...


Industry

June 4, 2004
By MRO Magazine
MRO Magazine

Ottawa, ON — The Machinery and Equipment Price Index for the first quarter of 2004 released recently by Statistics Canada was 127.9, up 0.1% from the fourth quarter of 2003 (1986=100). The domestic component decreased 0.1%, while the import component increased 0.1%. Compared with the first quarter of 2003, the index fell 7.7%, with decreases in the domestic (-2.8%) and import (-12.0%) components.

On a quarterly basis, increases in manufacturing (+0.2%) and in mines, quarries and oil wells (+0.5%) were offset by decreases in agriculture (-0.9%) and transport (-0.1%).

Paper and allied products (+0.2%), food and beverages (+0.4%) and chemicals (+0.1%) contributed the most to the manufacturing increase. Transport was led by railway transport (-5.3%), which posted the strongest industrial drop.

On a year-over-year basis, all industries declined. Manufacturing (-7.4%), agriculture (-12.6%) and transportation, communication, storage and utilities (-6.5%) were the most significant.

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In the first quarter, increases in specialized industrial equipment (+0.3%), special purpose furniture (+1.5%) and ships and boats, military and commercial (+1.0%) were dampened by decreases in locomotive, cars and tenders (-6.9%), other agricultural machinery (-1.6%) and trucks (-0.3%).

On a quarterly basis, the Canadian dollar recorded the first quarterly decrease (-0.3%) against the American dollar, after four increases in a row. Annually, the Canadian dollar increased 14.7% over the first quarter of 2003.