Ottawa – The Machinery and Equipment Price Index (MEPI) from Statistics Canada was unchanged in the third quarter of 2014 compared with the previous quarter. The import component was up 0.1% over the period, while the domestic component increased 0.2%.
The Canadian dollar appreciated 0.1% against the US dollar in the third quarter compared with the second quarter. Variations in exchange rates can have a significant influence on the MEPI given the high weight of imported machinery and equipment in the index.
Among industries, an increase in transportation and warehousing (+0.2%) and, to a lesser extent, construction (+0.2%) was mainly offset by a decrease in finance, insurance and real estate (-0.1%) and, to a lesser extent, mines, quarries and oil wells (-0.1%).
Compared with the third quarter of 2013, the total MEPI increased 5.0%, with the import component rising 6.5% and the domestic component up 1.4%. The movement in the import component was partly influenced by the year-over-year depreciation of the Canadian dollar (-4.7%) against the US dollar.