Canada’s Industrial Capacity Utilization Falls in Q2

Canadian industrial capacity utilization declined to 79.3% in Q2 2025 from a downwardly revised 79.9% in the previous quarter, above market expectations of 78.8%. Sluggish performance in key resource sectors contributed to the decline. Capacity utilization in the mining, quarrying, and oil and gas extraction sector fell 1.0 percentage point to 75.9%, driven by reduced oil and gas output amid wildfires and scheduled maintenance. Utilities capacity use dropped 2.9 percentage points to 83.1% as dry weather curbed hydroelectric generation. Manufacturing utilization declined 0.7 percentage point to 76.7%, mainly due to declines in petroleum and coal products (-5.2 percentage points) and food manufacturing (-2.6 percentage points).