Quarterly financial statistics for enterprises, third quarter 2021

The non-financial sector drove the increase during the quarter, recording an increase of 5.6% in NIBT.

The financial sector offset some of the gains made by the non-financial sector, slipping 1.6% during the period. Through the quarter, businesses saw input prices and prices for raw materials rise as supply chains were disrupted across the world, and many advanced economies began to observe inflationary pressures.

Late in the second quarter and early in the third quarter of 2021, Western Canada experienced a record-setting heatwave that fuelled wildfires and droughts, affecting the supply chain for food products.

As mentioned by Statistics Canada in model-based estimates of field crop in 2021, total grain and pulse production in the country is expected to see a sharp decline in 2021 due to adverse weather conditions and lower crop yields in the Prairie provinces. As some of these agricultural products were harvested in fall, the effect of decreased volumes may persist through the food products supply chain for months to come.

During the third quarter, the agriculture, forestry, fishing, and hunting industry saw a 41.2% decrease in NIBT.

As of 2018, 80.4% of inputs used in the manufacturing of food products were sourced domestically. Operating revenues for food and soft drink and ice manufacturers grew by $677.4 million, an increase of 1.7% from the second quarter of 2021. The before tax profit margin for the industry edged up 4.6 basis points, suggesting that increases in the cost of goods sold kept pace with revenue growth.

During the third quarter of 2021, food and soft drink and ice manufacturers saw their NIBT increase by $50.9 million, or 2.7%.