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Industrial use rates for Canadian industry fall to 22-year low, StatsCan figures show

Canadian industry continued to reduce its production in 2009's first quarter, according to Statistics Canada.

Canadian industry continued to reduce its production in 2009's first quarter, according to Statistics Canada.

Industrial capacity use rates fell 5.6% compared with rates in 2008's fourth quarter.

Canadian industries were operating at an average 69.3% of production capacity, the first time that capacity has fallen below 70% since StatsCan started collecting information in 1987.

Transportation equipment, construction and mining industries were the main contributors to the overall drop. The transportation equipment sector led the first-quarter decline from 58.3% in the fourth quarter to 42.5% in 2009's first quarter.

The mining sector's rates fell 14.8% to 55.3%, the lowest ever posted by the sector.

Manufacturers suffered their largest first-quarter production capacity decline: 7.8% to 65.9%. Durable goods, transportation equipment, primary metals, fabricated metals, machinery and wood product manufacturing led the decline.

Year over year, total industrial use fell 10.5%. It was led by declines in:

transportation equipment manufacturing (35%);

mining (18%);

plastic production (15.7%); and

manufacturing (14.2%).

However, not all sectors declined. Beverage producers increased their production use rates by 9.8% year over year. Leather production rose 6.2%, while tobacco production use rate rose 4.5%.

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