All industries posted decreases in the price of machinery and equipment in second quarter
Ottawa – Statistics Canada’s Machinery and Equipment Price Index (MEPI) decreased 0.9% in the second quarter of 2015 compared with the previous quarter. This was the first quarterly decline since the second quarter of 2014. The import component was down 1.1% in the second quarter, while the domestic component fell 0.1%.
The Canadian dollar appreciated 1.0% against the US dollar in the second quarter compared with the first 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.
All industries posted decreases in the price of machinery and equipment purchased in the second quarter. The largest contributor to the quarterly decline was finance, insurance and real estate (-1.1%). Other services excluding public administration (-1.1%), public administration (-1.0%) and transportation and warehousing (-1.0%) also contributed to the decline in prices.
Among commodities, computers and computer peripheral equipment (-3.0%) contributed the most to the quarterly decrease of the total MEPI. Passenger cars (-1.2%), aircraft and aircraft engines (-1.0%), commercial and service industry machinery (-0.9%) and other industry-specific machinery (-0.8%) also contributed to the quarterly decline.
Compared with the second quarter of 2014, the total MEPI increased 11.2%, reflecting large price increases in the first quarter of 2015. The import component increased 13.3% and the domestic component was up 5.1%. The movement in the import component was partly influenced by the year-over-year depreciation of the Canadian dollar (-11.3%) against the US dollar.