Canadian investment in building construction up 5 percent in August

Canadian investment in building construction up 5 percent in August

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According to Statistics Canada, total investment in building construction increased 5.0 percent to $16.0 billion in August. Residential sector investment increased 8.2 percent to $10.8 billion, while non-residential investment decreased 1.2 percent to $5.2 billion. As construction companies pushed to catch up on work delayed earlier in the spring, August saw construction investment reach a record high. However, on a year-to-date basis total investment was 3.7 percent lower than for the same period in 2019.

Investment in residential construction rose for the fourth consecutive month in August, up 8.2 percent to $10.8 billion. Single-unit investment rose 5.4 percent to $5.4 billion, while multi-unit investment was up 11.2 percent to $5.4 billion, slightly surpassing single-unit investment levels. Multi-unit investment gains were reported in nine provinces, led by Alberta (+42.4 percent) and Quebec (+15.8 percent). The growth in Alberta was driven by the construction of several high-rise apartments in the cities of Calgary and Edmonton. Prince Edward Island was the only province to report a decline for the month (-17.3 percent). Residential construction values in Canada exceeded February 2020 pre-COVID levels for the first time in August.

Non-residential investment declined 1.2 percent to $5.2 billion in August, with decreases reported in all three components. Declines were posted in seven provinces, with the largest decline recorded in Quebec. New Brunswick posted its seventh consecutive month-to-month decrease, down 2.1 percent in August. Despite these declines, August levels remain higher than February 2020 pre-COVID levels for all components except industrial investment.

Nationally, the industrial component was down 1.4 percent to $895 million in August, with declines reported in seven provinces.

Investment in the commercial component was down 1.5 percent to $3.1 billion in August. Gains in Newfoundland and Labrador (+12.2 percent) and Prince Edward Island (+8.3 percent) were outweighed by declines in the eight remaining provinces.

Investment in the institutional component of non-residential investment edged down 0.5 percent to $1.2 billion. The majority of the declines were reported in Ontario and Quebec, more than offsetting gains in Alberta, Nova Scotia and New Brunswick.

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