Building construction investment drops for the first time in seven months in May
Investment in building construction pulled back slightly in May, Statistics Canada reports.
The latest data shows a drop in building construction values of $19.4 billion, down 1.9 percent compared with April’s record high of $19.9 billion. The loss was the first in seven months. Even the residential sector, which has been bullish for some time, recorded its first drop since April 2020.
Residential construction was down 2.7 percent in May, bringing total investment to $14.8 billion with declines in both single and multi-unit construction.
Investment in single-family homes was down 2.7 percent to $8.3 billion. Quebec and Ontario posted the largest declines. Despite the decrease this month, single-unit investment remained approximately 60.0 percent above pre-COVID-19 levels.
With half of the provinces decreasing, multi-unit construction investment fell 2.6 percent to $6.5 billion in May. Quebec reported the largest decline (-11.0 percent), reversing a 13.0 percent increase in April.
Non-residential investment, meanwhile, increased 0.6 percent to $4.7 billion in May. Investment in commercial construction increased 0.8 percent to $2.6 billion. Ontario continued to lead this component with multiple high-value construction projects in the works across the province such as Amazon fulfillment centres, the Labourers Union office building in Vaughan and a Canadian Tire distribution centre in Brampton.
Institutional investment continued to grow for the seventh consecutive month, up 1.2 percent to $1.2 billion. Quebec led the way, advancing 3.7 percent to $341 million. Ontario, Alberta and Prince Edward Island were the other provinces to report notable gains.
Seven provinces saw declines in industrial construction, which decreased 0.7 percent to $837 million nationally in May.
Featured image: Infographic showing national non-residential construction investment values in May 2021. (Statistics Canada)