Machinery and equipment price index up 3.3% in last quarter of 2011
Ottawa, ON – The Machinery and Equipment Price Index (MEPI) rose 3.3% in the fourth quarter of 2011 compared with the previous quarter, according to Statistics Canada. The import component was up 5.2% over this period, while the domestic...
Ottawa, ON – The Machinery and Equipment Price Index (MEPI) rose 3.3% in the fourth quarter of 2011 compared with the previous quarter, according to Statistics Canada. The import component was up 5.2% over this period, while the domestic component increased 0.2%.
All industries posted increases in prices of machinery and equipment purchased in the fourth quarter. The largest contributor to the total MEPI quarterly increase was manufacturing (+3.3%), led by transportation equipment manufacturing (+3.1%) and primary metal and fabricated metal product manufacturing (+3.2%) industries. The second largest contributor to the quarterly increase of the total MEPI was finance, insurance and real estate (+3.7%).
On a commodity basis, almost all commodities posted price increases in the fourth quarter. Among these, trucks, road tractors and chassis (+6.4%) and other industry specific machinery (+3.9%) contributed the most to the quarterly increase of the total MEPI.
The Canadian dollar depreciated 4.2% against the US dollar in the fourth quarter compared with the previous quarter. 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.
Compared with the fourth quarter of 2010, the total MEPI increased 2.4%, with the import component rising 3.1% and the domestic component up 1.1%. The movement in the import component was partly influenced by the year-over-year change in the Canadian dollar (-1.0%) against the US dollar.