In the second quarter of 2023, Canada’s forestry and logging sector had a capacity utilization rate of 73.2%, below the industry average of 81.4%, according to Statistics Canada. This represents a notable decline of 2.7 percentage points from the previous quarter’s rate of 75.9%. On an annualized basis, the sector’s utilization rate decreased by 3.0 percentage points compared to the second quarter of 2022, which was 76.2%.
The wood products sector also faced challenges, with capacity utilization at 75.7% in the second quarter of 2023. This reflects a slight decline of 0.7 percentage points from the previous quarter, when the rate was 76.4%. The year-over-year comparison shows a larger decline of 6.0 percentage points compared to the second quarter of 2022, when the rate was 81.7%. Lumber production in Canada decreased 6.6% from May to 3 744.2 thousand m3 in June 2023. Production was down 16.8% from June 2022.
The Canadian paper sector’s capacity utilization rate in the second quarter of 2023 was 81.9%, slightly below the industry average and down 0.9 percentage points from 82.8% in the previous quarter. Looking back, the sector was down 2.7 percentage points from the second quarter of 2022, when occupancy was 84.6%.
Canada’s construction sector had a capacity utilization rate of 88.5% in the second quarter of 2023. This represents a decline of 1.2 percentage points from the first quarter of 2023, when it was 89.7%. Year-on-year, the sector saw a decline of 2.6 percentage points from the second quarter of 2022, when it was 91.1%. The home sales in Canada edged down by 0.7% in July, reflecting the current trend of stabilization after a period of heightened activity earlier this year.