Machinery and Equipment Price Index, third quarter 2018
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Released: 2018-11-26
The Machinery and Equipment Price Index (MEPI) increased 1.5% in the third quarter, following a 2.0% increase in the second quarter. The import component was up 1.7% while the domestic component increased 0.5%.
The prices of imported machinery and equipment are reported in US dollars and are converted to Canadian dollars. Consequently, any change in the value of the Canadian dollar relative to the US dollar will affect the level of the index. The Canadian dollar depreciated 1.2% relative to the US dollar from the second quarter to the third quarter.
All industries increase in the third quarter
Transportation and warehousing (+2.4%) was the largest contributor to the quarterly increase in the MEPI. Other major contributors were finance, insurance and real estate (+1.1%), all manufacturing industries (+1.5%), mines, quarries and oil wells (+1.3%) and public administration (+1.2%).
Prices rise for most commodities in the third quarter
Buses (+7.3%), logging, mining and construction machinery and equipment (+1.2%), computers and computer peripheral equipment (+1.3%), medium and heavy-duty trucks and chassis (+1.5%) and other industry-specific machinery (+1.5%) all contributed to the quarterly price increase.
Year-over-year change
The total MEPI increased 4.9% in the third quarter compared with the same quarter in 2017.
The import component was up 5.9% while the domestic component increased 1.8%. The movement in the import component was influenced by the year-over-year depreciation of the Canadian dollar (-4.2%) against the US dollar.
Note to readers
The Machinery and Equipment Price Index (MEPI) provides quarterly estimates of price changes for machinery and equipment purchased by industries in Canada.
Data are available at the Canada level only.
The conversion of prices received in US dollars is based on the average monthly exchange rate (end of day) established by the Bank of Canada, which is available in table 33-10-0163-01 (formerly CANSIM 176-0081). Quarterly and year-over-year variations in the exchange rate, as described in the release, are calculated according to the indirect quotation of the exchange rate (for example, CAN$1 = US$X).
The contribution of a given sub-aggregate to the composite price change depends on both the price change exhibited by the sub-aggregate and its importance in the basket, as measured by the weight.
With each release, data for the previous two quarters may have been revised. This index is not seasonally adjusted.
Additional series available
With the release of third quarter 2018 data, additional series for the MEPI are now available in tables 18-10-0057-01 and 18-10-0057-02 with a data quality indicator of "E." Users are currently advised to use these indexes with caution.
A Historical Timeline of Canadian Producer Price Statistics
"A Historical Timeline of Canadian Producer Price Statistics," which is part of the Prices Analytical Series (62F0014M), was created to showcase the key milestones in the history of Canadian producer price statistics. This historical timeline contains answers to questions such as: Who collected Canada's first statistics? What do Canadian producer price indexes measure?
Infographic: Producer Price Indexes at a Glance
The infographic "Producer Price Indexes at a Glance," which is part of Statistics Canada — Infographics (11-627-M) demonstrates how producer price indexes for goods and services are calculated and why they are important for the Canadian economy.
Contact information
For more information, or to enquire about the concepts, methods or data quality of this release, contact us (toll-free 1-800-263-1136; 514-283-8300; STATCAN.infostats-infostats.STATCAN@canada.ca) or Media Relations (613-951-4636; STATCAN.mediahotline-ligneinfomedias.STATCAN@canada.ca).
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