2017.12.1021:35:00UTC+00Canada Industrial Capacity Grew in the Third Quarter

Canada's industrial capacity increased in the third quarter for the fifth straight quarter as growth in the construction sector counterbalanced lower extraction volumes in the oil and gas industry, according to Statistics Canada data.

Capacity utilization grew to 85.0 percent, recording a 10-year peak. Data from the second quarter was downwardly revised to 84.3 percent.

Capacity in the construction sector increased to 89.1 percent from 87.6 percent on an overall rise in activity.

The gains were propelled by the electric power generation and transmission industry, as its utilization rate increased to 88.9 percent from 85.2 percent, the highest level since the fourth quarter of 2008.

However, such a growth was toned down by oil and gas extraction, where capacity fell to 81.5 percent from 81.8 percent as a result of lower extraction volumes of conventional oil.

Capacity in the manufacturing sector climbed at 85.2 percent from 85.1 percent. The utilization rate grew in 13 of the 21 major manufacturing industries.

The reading comes a week after data measuring the country's gross domestic product indicated that Canada's economic growth slowed in the third quarter, to 1.7 percent on an annualized basis after growing 4.3 percent in the second quarter.

The Bank of Canada said the economy is operating close to or at capacity. Nevertheless, the central bank still held its benchmark rate unchanged at one percent, and said it would remain cautious in rate-policy making due to a series of uncertainties the economy faces.