Machinery and Equipment Price Index, second quarter 2019
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Released: 2019-08-23
The Machinery and Equipment Price Index (MEPI) increased 0.4% in the second quarter, following a 1.0% rise in the first quarter. The import component was up 0.4%, while the domestic component increased 0.1%.
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 0.6% relative to the US dollar in the second quarter compared with the first quarter.
Most industries increase
All manufacturing (+0.8%) was the largest contributor to the quarterly increase in the MEPI. Other major contributors were mining, quarrying, and oil and gas extraction (+0.7%) and public administration (+0.5%).
Prices rise for most commodities
Logging, mining and construction machinery and equipment (+0.7%), other industry-specific machinery (+1.4%) and aircraft and aircraft engines (+1.0%) all contributed to the quarterly price increase. This growth was moderated primarily by computers and computer peripheral equipment (-1.7%).
Year-over-year change
The total MEPI rose 4.5% in the second quarter of 2019 compared with the same quarter in 2018.
The import component was up 5.3%, while the domestic component increased 1.7%. The movement in the import component was influenced by the year-over-year depreciation of the Canadian dollar (-3.5%) 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 industry 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 this 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
As of the release of third-quarter 2018 data, additional series for the MEPI are 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.
Products
The video "Producer Price Indexes" is available on the Statistics Canada Training Institute webpage. It provides an introduction to Statistics Canada's producer price indexes: what they are, how they are made and what they are used for.
A Historical Timeline of Canadian Producer Price Statistics
The tool "A Historical Timeline of Canadian Producer Price Statistics," 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," 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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