Machinery and equipment price indexes decline in first quarter
Ottawa, ON -- Statistics Canada's Machinery and Equipment Price Index (MEPI) was 91.6 (1997=100) in the first quart...
Ottawa, ON — Statistics Canada’s Machinery and Equipment Price Index (MEPI) was 91.6 (1997=100) in the first quarter of 2006, down 0.5% from the fourth quarter of 2005.
The domestic component index increased 0.1% while the import index decreased 1.0% during this period. Compared with the first quarter 2005, the index was 3.0% lower, due mainly to a 4.6% decline in the import series. The domestic component index declined 0.4% during this period.
Most industrial sector indexes fell in the first quarter, with declines for finance, insurance and real estate, other services (excluding public administration), manufacturing and trade having the most influence on the total index movement.
In the manufacturing sector, declines for primary metal and fabricated metal products (-0.8%) and transportation equipment manufacturing (-0.3%) influenced the index downward. In the service sector, industries contributing to the decline in the index were real estate and rental and leasing services (-1.4%), other services (-1.2%) and information and cultural industries (-0.9%).
At the commodity level, compared to the last quarter, price declines for trucks (-2.6%), computers (-2.1%), passenger vans (-2.1%) and automobiles (-1.5%) contributed to a lower index. Most of the decline in the index can be attributed to lower import prices for these commodities.
The import index continued to be influenced by the decline in the value of the US dollar relative to its Canadian counterpart. The US dollar decreased 1.6% in the first quarter of 2006 and was 5.9% lower than its first quarter 2005 level.