Capacity Utilization Rates

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.

Detailed information for first quarter 2014

Data release - June 12, 2014

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.

Data sources

Data are collected from other Statistics Canada surveys and/or other sources.

The rate of capacity use is the ratio of actual output to potential output. The measures of actual output are the measures of real gross domestic product (GDP) at basic prices, seasonally adjusted by industry (survey record 1301). The measures of potential output are derived from the Fixed Capital Flows and Stock survey (survey record 2820).

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.

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.