Machinery and equipment prices fell in the fourth quarter and are down by 8.7% year over year, according to data released by Statistics Canada Tuesday.
Much of the decline came from a 3.4% decline in imported machinery and equipment between the third and fourth quarters.
All industries recorded price declines in the fourth quarter with the manufacturing sector contributing the most (-2.9%). The largest sub-sectors reporting declines included transportation equipment manufacturing (-2.9%), primary metal and fabricated product manufacturing (-2.9%) and paper manufacturing (-2.6%).
For the year, imported equipment prices have fallen 13%, whereas domestic equipment prices have fallen only 0.7%. The sectors reporting the largest declines in equipment prices include construction: (-9.6%), forestry (-9.3%), utilities (-9.3%) and transportation (-9.2%).