UPDATE 1-Canada industrial capacity use beats forecasts

* Q3 capacity use rises to 78.1 pct from 76.9 pct

* Rate is highest since Q3 2008, below peak in 2007

* Manufacturing sector main driver of gains
(Adds details)

OTTAWA, Dec 13 (BestGrowthStock) – Strong demand for vehicles and
other manufactured goods lift Canada’s industrial capacity use
to a higher-than-expected 78.1 percent in the third quarter,
suggesting businesses are coping with a stronger currency.

The rate rose for the fifth consecutive quarter to reach a
two-year high and was up from the 76.9 percent rate in the
second quarter, according to Statistics Canada on Monday. The
agency revised the estimate for the second quarter from 76
percent previously.

The gain of 1.2 percentage points was smaller than in the
previous three quarters but still exceeded a market forecast
that industries would operate at just 76.5 percent of their
potential output in the period. The rate peaked in the first
quarter of 2007.

The manufacturing sector, battered by the strong Canadian
dollar and weak demand in the U.S. market, drove most of the
gains, Statscan said. The sector’s capacity use rate jumped to
to 81.2 percent from a revised 78.7 percent in the previous

Factories making transportation equipment, including cars,
raised their capacity use to 74.3 percent from 70.3 percent in
the second quarter. Machinery makers ran at 85.4 percent
capacity, the third-highest level on record.

Overall, 15 of the 21 major industries within manufacturing
posted gains. In the non-manufacturing sector, only forestry
and logging registered a significant gain while other
industries showed modest ups or downs.
(Reporting by Louise Egan; Editing by Padraic Cassidy)

UPDATE 1-Canada industrial capacity use beats forecasts