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Canadian industrial capacity utilization rose to 80.1% in Q1 2025, up slightly from a downwardly revised 79.7% in the previous quarter and above market expectations of 79.8%. This marked the highest level since Q1 2023, driven by increased activity in key resource sectors. Capacity use in the mining, quarrying, and oil and gas extraction sector rose 0.7 percentage points to 76.7%, supported by stronger output in the oil sands and related support services. In the utilities sector, capacity use climbed 2.9 points to 86.1%, reflecting higher electricity demand for heating amid colder-than-usual temperatures in parts of the country. In contrast, manufacturing sector utilization dipped by 0.2 percentage points to 77.9%, primarily due to weaker activity in petroleum, coal, and fabricated metal product manufacturing.