According to Statistics Canada, the Machinery and Equipment Price Index (MEPI) increased 2.6 percent in the first quarter, following a 1.9 percent gain in the fourth quarter. The purchase price of machinery and equipment rose for the third consecutive quarter. The import component was up 3.1 percent, while the domestic component rose 0.7 percent.
All industries posted increases in the prices of machinery and equipment purchased in the first quarter. The finance, insurance and real estate industry (+2.4 percent) was the largest contributor to the quarterly gain in the MEPI. Mines, quarries and oil wells (+2.6 percent), all manufacturing (+2.7 percent), transportation and warehousing (+2.7 percent), public administration (+2.7 percent) and other services (+2.4 percent) also contributed to the quarterly price increase.
Among commodities, computers and computer peripheral equipment (+2.7 percent) and logging, mining and construction machinery and equipment (+2.4 percent) contributed the most to the quarterly increase in the total MEPI. Other industry-specific machinery (+3.0 percent), aircraft and aircraft engines (+3.2 percent) and commercial and service industry machinery (+2.7 percent) also contributed to the quarterly gain.
The total MEPI increased 9.1 percent in the first quarter compared with the same quarter in 2015.
The import component rose 10.9 percent and the domestic component was up 3.2 percent. The gain in the import component was partly influenced by the year-over-year depreciation of the Canadian dollar (-9.7 percent) against the US dollar.