Canadian industrial capacity utilization rose to 78.5% in Q3 2025 from a downwardly revised 77.6% in the previous period, though missing market forecasts of 79.3%. Capacity utilization in the construction sector increased 1.3 percentage points to 80.2%, marking the first quarterly gain following eight consecutive declines, on higher activity in engineering construction. The capacity utilization rate in the manufacturing sector rose 1.2 percentage points to 77.8%, driven by petroleum and coal product manufacturing (+10.8 pp) and transportation equipment manufacturing (+1.8 pp). At the same time, capacity utilization in the mining, quarrying, and oil and gas extraction sector increased 0.7 percentage points to 77.1%, bolstered by oil and gas extraction. In contrast, the capacity utilization rate in the electric power generation, transmission and distribution sector fell 1.7 percentage points to 78.8%, amid reduced hydroelectric generation caused by dry conditions.