Machinery and equipment prices decreased in fourth quarter of 2010
Ottawa, ON -- The Machinery and Equipment Price Index (MEPI) declined by 1.2% in the fourth quarter, according to Statistics Canada. The import component decreased by 2.0% over this period, while the domestic component fell by 0.2%. The total...
Ottawa, ON — The Machinery and Equipment Price Index (MEPI) declined by 1.2% in the fourth quarter, according to Statistics Canada. The import component decreased by 2.0% over this period, while the domestic component fell by 0.2%. The total MEPI decreased by 2.4% compared with the fourth quarter of 2009, with the import component falling by 3.7% and the domestic component down by 0.4%.
All industries recorded declines in the prices of machinery and equipment purchased in the fourth quarter. The largest contributor to the total MEPI decline was manufacturing industries (-1.7%), led by the following subcomponents: transportation equipment manufacturing (-1.6%) and primary metal and fabricated metal product manufacturing (-1.6%). The second largest industry sector contributor to the quarterly decline of the total MEPI was other services (excluding public administration), which was down by 1.4%.
Among commodities, other industry specific machinery (-1.9%) and computers and peripherals equipment such as terminals, printers and storage devices (-4.1%) were the largest contributors to the quarterly decline of the total MEPI.
The Canadian dollar appreciated by 2.6% against the US dollar in the fourth quarter, while year over year, it gained 4.3% 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 in 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 first quarter of 2011 will be released on May 26.