Machinery and equipment price indexes

The Machinery and Equipment Price Index (MEPI) was 125.6 (1986=100) in the fourth quarter of 2005, down 0.6% from the third quarter. The domestic component increased 0.1%, while the imported component decreased 1.3% during this period. Compared with the fourth quarter of 2004, the index edged down 0.2%, due mainly to a decrease in the import series (-1.1%).

Most industrial sector indexes decreased, while the remaining had slight increases of less than 1%, compared to the previous quarter. The total index drop was mostly influenced by manufacturing (-0.6%), transport, communication, storage and utilities (-0.5%) and community, business and personal services (-1.1%). Paper and allied products (-1.3%) and transportation equipment (-1.2%) exerted the strongest influence on the manufacturing decrease. Air transportation (-1.4%), electric power (-0.4%) and telephones (-0.7%) were the most significant factors in the downward movement of transport, communication, storage and utilities costs.

At the commodity level, compared to the last quarter, the major contributors to the decline were specialized industrial equipment (-0.6%), automobiles (-1.3%) and tractors (-2.2%). The specialized industrial equipment was influenced, in most part, by the decrease in the imported component (-0.8%).

On a quarterly basis, the Canadian dollar continued to strengthen (+2.38%) against its American counterpart, helping to lower the prices of imported goods. Annually, the Canadian dollar rose 4.83% over the fourth quarter 2004.

Note: The release of the fourth quarter 2005 Machinery and Equipment Price Index (MEPI) (1986=100) marks the end of the production and publication of this series. Starting with the release of the first quarter 2006, the Machinery and Equipment Price Index (MEPI) (1997=100) will be introduced containing new commodities and industry details. This series also contains updated weights for commodity, industries and domestic/import splits. Data for this new series will be available quarterly from the first quarter 1997 inclusive.

Available on CANSIM: tables 327-0013, 327-0014 and 327-0016.

Definitions, data sources and methods: survey number 2312.

The fourth quarter 2005 issue of Capital Expenditure Price Statistics (62-007-XIE, $20/$59) will be available in April.

For more information, or to enquire about the concepts, methods, and data quality for this release, contact Client Services Unit, Prices Division (613-951-9606); fax: (613-951-1539), infounit@statcan.gc.ca, or Adrian Fisher (613-951-9612).