Capacity Utilization Rates
Detailed information for third quarter 2003
Status:
Active
Frequency:
Quarterly
Record number:
2821
The rates of capacity use are measures of the intensity with which industries use their production capacity. Capacity use is the percentage of actual to potential output.
Data release - December 10, 2003
Description
The rates of capacity use are measures of the intensity with which industries use their production capacity. Capacity use is the percentage of actual to potential output.
The data are used by economic analysts in various Canadian government departments and agencies such as Statistics Canada, the Bank of Canada, Finance Canada, Industry Canada, and in provincial agencies, trade associations, universities and international organizations such as the OECD.
Reference period: quarter
Subjects
- Manufacturing
Data sources and methodology
Target population
Non-farm goods-producing industries.
Instrument design
This methodology does not apply.
Sampling
This methodology does not apply.
Data sources
Data are collected from other Statistics Canada surveys and/or other sources.
The capacity utilization rate is the ratio of actual output to potential output. The measures of actual output are the measures of real gross domestic product at basic prices, seasonally adjusted by industry (see Gross Domestic Product by Industry - National [Monthly], record number 1301). The measures of potential output are derived from the Stock and Consumption of Fixed Non-residential Capital program (record number 2820).
Error detection
This methodology does not apply.
Imputation
This methodology does not apply.
Estimation
The rates of capacity use are the percentage of actual to potential output. Quarterly Gross Domestic Product by industry (GDP) is used as the measure of actual output. The GDP is used with net capital stock by industry from the Fixed Capital Flows and Stocks system to create output-to-capital ratios.
In the logging and forestry industries, mining, quarrying and oil wells, construction, gas distribution systems, and pipelines, the potential output by industry is determined by de-trending the output-to-capital ratios by means of the Hoddrick-Prescott filter.
In manufacturing industries and electric power systems, a quadratic minimization technique of the Denton type is used to convert annual benchmarks to quarterly measures using the quarterly output-to-capital ratios. In the manufacturing industries, annual benchmark levels of capacity use are established using surveyed measures from the Capital and Repair Expenditures Survey (survey record 2803) together with other information on economic activity. In electric power systems, annual benchmark levels are established by using information on power generation and installed capacity from Manufacturing, Construction and Energy Division and the Canadian Electricity Association.
Quality evaluation
In the manufacturing industries, annual benchmark levels of capacity use are established using surveyed measures from the Capital and Repair Expenditures Survey (survey record 2803) together with other information on economic activity. In electric power systems, annual benchmark levels are established by using information on power generation and installed capacity from Manufacturing, Construction and Energy Division and the Canadian Electricity Association. These complementary data are used to assess the validity of the estimated data.
Disclosure control
Statistics Canada is prohibited by law from releasing any information it collects which could identify any person, business, or organization, unless consent has been given by the respondent or as permitted by the Statistics Act. Various confidentiality rules are applied to all data that are released or published to prevent the publication or disclosure of any information deemed confidential. If necessary, data are suppressed to prevent direct or residual disclosure of identifiable data.
Revisions and seasonal adjustment
This methodology type does not apply to this statistical program.
Data accuracy
No direct measures of the margin of error in the estimates can be calculated. The quality of the estimates can be inferred from analysis of revisions and from a subjective assessment of the data sources and methodology used in the preparation of the estimates.
Documentation
- Canadian Industrial Capacity Utilization Rates: A Brief Summary of Methodology
- Date modified: