FX.co ★ Canada’s Industrial Capacity Use Rises to Two-Year High

In the first quarter of 2025, Canadian industrial capacity utilization increased to 80.1%, marking an improvement from a revised 79.7% in the previous quarter and surpassing market expectations of 79.8%. This represents the highest utilization rate since the first quarter of 2023, propelled by heightened activities in pivotal resource sectors. Specifically, capacity utilization in the mining, quarrying, and oil and gas extraction sectors ascended by 0.7 percentage points to 76.7%, bolstered by increased output in the oil sands and associated support services. Meanwhile, the utilities sector experienced a 2.9-point rise in capacity utilization, reaching 86.1%, driven by an uptick in electricity demand for heating due to unusually cold temperatures in certain parts of the country. Conversely, the manufacturing sector saw a slight decline in capacity utilization by 0.2 percentage points, bringing it to 77.9%, primarily due to diminished activity in petroleum, coal, and fabricated metal product manufacturing.