Canadian industries operated at 85.0% of their production capacity in the second quarter of 2017, up from 83.2% in the previous quarter. This reflected the very strong growth in economy-wide production. This was the second straight quarter where the industrial capacity utilization rate exceeded the historical average of 83.1%.

The mining, quarrying and oil and gas extraction sector was the main source of the increase.

Following two consecutive quarters of declines, the capacity utilization rate in oil and gas extraction rose 3.3 percentage points to 84.0% in the second quarter, due to higher volumes of oil and gas extraction.

The capacity utilization rate in construction posted a third consecutive quarterly increase, rising from 86.4% to 87.7%. As in the previous quarter, the increase was mainly due to residential construction, and to engineering and repair work.

The capacity utilization rate in forestry and logging fell from 86.8% to 85.7% in the second quarter, a third consecutive quarterly decline. This decrease was attributable to a decline in activities in the industry.