Canadian industries operated at 80.0% of their production capacity in the second quarter, down from 81.4% in the previous quarter.

The decline in the industrial capacity utilization rate was widespread, with 19 of the 21 major groups in the manufacturing sector recording a lower rate. A decrease was also observed in every other non-manufacturing industry surveyed, except electric power generation, transmission and distribution.

Oil and gas extraction was the main source of the decline in the capacity utilization rate in the second quarter, with its rate down 4.2 percentage points to 73.9%, after an increase the previous quarter. A decrease in the volume of oil extraction following the wildfire in Fort McMurray was the main reason for the decline.

The construction capacity utilization rate fell for the fifth time in six quarters, down from 83.8% in the first quarter to 83.5% in the second quarter. The decrease in the second quarter was attributable to a widespread decline in activity in this industry.