Machinery and Equipment Price Index, fourth quarter 2015
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Released: 2016-02-24
The Machinery and Equipment Price Index (MEPI) increased 1.9% in the fourth quarter, following a 5.3% gain in the third quarter. The import component was up 2.3%, while the domestic component rose 0.7%.
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 1.9% relative to the US dollar in the fourth quarter.
All industries posted increases in the prices of machinery and equipment purchased in the fourth quarter. The largest contributor to the quarterly gain in the MEPI was the finance, insurance and real estate industry (+2.4%). The transportation and warehousing industry (+2.1%) and the mines, quarries and oil wells industry (+1.6%) also contributed to the quarterly price increase.
Among commodities, logging, mining and construction machinery and equipment (+1.6%) and passenger cars (+4.0%) contributed most to the quarterly increase in the total MEPI. Computers and computer peripheral equipment (+1.2%), other industry-specific machinery (+1.8%), aircraft and aircraft engines (+1.9%) and commercial and service industry machinery (+1.7%) also contributed to the quarterly gain.
Year-over-year change
The total MEPI increased 14.9% in the fourth quarter compared with the same quarter in 2014. This was the fourth consecutive double-digit year-over-year increase. The gain in the fourth quarter reflected large quarterly price increases in the first and third quarters of 2015. The purchase price of machinery and equipment has increased year over year every quarter since the fourth quarter of 2012.
The import component increased 17.9%, and the domestic component was up 6.1%. The movement in the import component was partly influenced by the year-over-year depreciation of the Canadian dollar (-14.9%) 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 (noon spot rate) established by the Bank of Canada, which is available in CANSIM table 176-0064 (series v37426). Quarterly and annual 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. The index is not seasonally adjusted.
Next release
The MEPI for the first quarter will be released in May.
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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