Canada’s Industrial Capacity Utilization Up in Q3

2025-12-12 13:36 By Luisa Carvalho 1 min. read

Canadian industrial capacity utilization rose to 78.5% in Q3 2025 from a downwardly revised 77.6% in the previous period, though missing market forecasts of 79.3%.

Capacity utilization in the construction sector increased 1.3 percentage points to 80.2%, marking the first quarterly gain following eight consecutive declines, on higher activity in engineering construction.

The capacity utilization rate in the manufacturing sector rose 1.2 percentage points to 77.8%, driven by petroleum and coal product manufacturing (+10.8 pp) and transportation equipment manufacturing (+1.8 pp).

At the same time, capacity utilization in the mining, quarrying, and oil and gas extraction sector increased 0.7 percentage points to 77.1%, bolstered by oil and gas extraction.

In contrast, the capacity utilization rate in the electric power generation, transmission and distribution sector fell 1.7 percentage points to 78.8%, amid reduced hydroelectric generation caused by dry conditions.



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Canada’s Industrial Capacity Utilization Up in Q3
Canadian industrial capacity utilization rose to 78.5% in Q3 2025 from a downwardly revised 77.6% in the previous period, though missing market forecasts of 79.3%. Capacity utilization in the construction sector increased 1.3 percentage points to 80.2%, marking the first quarterly gain following eight consecutive declines, on higher activity in engineering construction. The capacity utilization rate in the manufacturing sector rose 1.2 percentage points to 77.8%, driven by petroleum and coal product manufacturing (+10.8 pp) and transportation equipment manufacturing (+1.8 pp). At the same time, capacity utilization in the mining, quarrying, and oil and gas extraction sector increased 0.7 percentage points to 77.1%, bolstered by oil and gas extraction. In contrast, the capacity utilization rate in the electric power generation, transmission and distribution sector fell 1.7 percentage points to 78.8%, amid reduced hydroelectric generation caused by dry conditions.
2025-12-12
Canada’s Industrial Capacity Utilization Falls in Q2
Canadian industrial capacity utilization declined to 79.3% in Q2 2025 from a downwardly revised 79.9% in the previous quarter, above market expectations of 78.8%. Sluggish performance in key resource sectors contributed to the decline. Capacity utilization in the mining, quarrying, and oil and gas extraction sector fell 1.0 percentage point to 75.9%, driven by reduced oil and gas output amid wildfires and scheduled maintenance. Utilities capacity use dropped 2.9 percentage points to 83.1% as dry weather curbed hydroelectric generation. Manufacturing utilization declined 0.7 percentage point to 76.7%, mainly due to declines in petroleum and coal products (-5.2 percentage points) and food manufacturing (-2.6 percentage points).
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Canada’s Industrial Capacity Use Rises to Two-Year High
Canadian industrial capacity utilization rose to 80.1% in Q1 2025, up slightly from a downwardly revised 79.7% in the previous quarter and above market expectations of 79.8%. This marked the highest level since Q1 2023, driven by increased activity in key resource sectors. Capacity use in the mining, quarrying, and oil and gas extraction sector rose 0.7 percentage points to 76.7%, supported by stronger output in the oil sands and related support services. In the utilities sector, capacity use climbed 2.9 points to 86.1%, reflecting higher electricity demand for heating amid colder-than-usual temperatures in parts of the country. In contrast, manufacturing sector utilization dipped by 0.2 percentage points to 77.9%, primarily due to weaker activity in petroleum, coal, and fabricated metal product manufacturing.
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