MRO Magazine

Machinery and equipment prices remain flat

Ottawa - The Machinery and Equipment Price Index (MEPI) was unchanged in the fourth quarter compared with the previous quarter, Statistics Canada reports. The import component was up 0.1% over this period, while the domestic component was down...


Ottawa – The Machinery and Equipment Price Index (MEPI) was unchanged in the fourth quarter compared with the previous quarter, Statistics Canada reports. The import component was up 0.1% over this period, while the domestic component was down 0.1%.

Among industries, an increase in mines, quarries and oil wells (+0.5%) and transportation excluding pipeline transportation (+0.3%) was offset mainly by a decrease in other services excluding public administration (-0.3%) and manufacturing (-0.1%).

On a commodity basis, an increase in trucks, road tractors and chassis (+1.3%) and construction machinery (+2.0%) was offset mainly by a decrease in broadcasting and radio communications equipment (-1.6%) and pumps, compressors, fans and blowers (-0.8%).

The Canadian dollar appreciated 0.4% 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.

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Compared with the fourth quarter of 2011, the total MEPI decreased 0.7%, with the import component down 1.8% and the domestic component up 1.2% The movement in the import component was partly influenced by the year-over-year change in the Canadian dollar (+3.2%) against the US dollar.