Ottawa, ON — The Machinery and Equipment Price Index (MEPI) increased by 0.7% in the third quarter of 2010, reports Statistics Canada. The import component increased by 1.1% over this period, while the domestic component rose by 0.1%. Compared with the third quarter of 2009, the total MEPI fell by 3.5% with the import component declining by 5.2%. The domestic component decreased by 0.5% for this period.
All industries recorded increases in the prices of machinery and equipment purchased in the third quarter. Manufacturing industries increased by 1.0%, contributing the most to the total MEPI quarterly rise.
Within this sector, the subcomponents contributing the most to the increase included transportation equipment manufacturing (+1.0%) and primary metal and fabricated metal product manufacturing (+1.0%). The second largest contributor to the total quarterly increase in the MEPI was transportation (excluding pipeline transportation), with a quarterly increase of 1.0%.
Among commodities, price increases for other industry specific machinery (+1.4%) and other agricultural machinery (+1.5%) were the largest contributors to the quarterly index advance.
The Canadian dollar depreciated by 1.1% against the US dollar in the third quarter, while, year over year, it gained 5.6% against its US counterpart. Variations in exchange rates can have a strong influence on the MEPI, given the high weight that imported machinery and equipment has on the index.
Note: This release presents data that are not seasonally adjusted and the indexes published are subject to a four-quarter revision period after dissemination of a given quarter’s data.
The machinery and equipment price indexes for the fourth quarter will be released on February 24, 2011.