Machinery and equipment price index shows decline
Ottawa, ON -- The Machinery and Equipment Price Index (MEPI) compiled by Statistics Canada fell 1.7% in the second ...
Ottawa, ON — The Machinery and Equipment Price Index (MEPI) compiled by Statistics Canada fell 1.7% in the second quarter of 2006, from the first quarter, to 90.1 (1997=100). The domestic component index declined 0.1%, while the import series declined 2.7% over this period.
The total MEPI was down 5.7% compared to the second quarter of 2005. This annual movement was due mainly to an 8.6% decrease in the import index, influenced by a continuing decline in the value of the US dollar. The domestic index declined 0.5% on an annual basis.
Lower prices for machinery and equipment purchased by the financial, insurance and real estate industries contributed most to the total index movement in the second quarter of 2006. This sector was 2.4% below the first quarter level, with the finance and insurance industry accounting for the largest portion of the decline.
The manufacturing sector was 1.5% lower, due mainly to declines in transportation equipment (-1.5%), primary metal and fabricated metal product (-1.5%) and paper (-1.4%) industries. The aggregate group other services (excluding public administration) declined 1.7%, led by lower indexes for information and cultural industries (-1.6%) and professional, scientific and technical services (-1.9%).
At the commodity level, quarterly price decreases for automobiles, excluding passenger vans (-3.8%), trucks, road tractors and chassis (-3.1%), computers and peripherals equipment such as terminals, printers and storage devices (-3.7%) and other industry specific machinery (-2.0%), contributed to a lower total index. For all these commodities, it was the import series which had the greater influence on index movement.
The US dollar depreciated 2.8% vis–vis the Canadian dollar in the second quarter of 2006, while on an annual basis it declined 9.8% in value.