Construction investment falls again in September
Growth in spending in all three components of the non-residential construction sector was not enough to offset another drop in residential-sector investment in September.
Statistics Canada’s latest look at building-construction investment trends shows a drop of 0.7 percent in September. The national figure is now at $17.5 billion, and has been on a steady downward trend since May.
The value of residential-sector investment decreased 1.6 percent in September, with Quebec accounting for most of the decline. The good news is that, despite recent declines, investment in the residential component remains nearly 22 percent above February 2020’s pre-pandemic value.
Investment in single-family homes edged down 0.6 percent to $7.0 billion, with declines reported in eight provinces. Multi-unit construction investment decreased in seven provinces, down 2.9 percent nationally to $5.8 billion.
Meanwhile, investment in all three non-residential components increased for the month.
Commercial investment grew by 1.8 percent to $2.6 billion in September, with Ontario and Quebec leading the way. Office building construction projects in Toronto and Ottawa led to gains in Ontario, following three consecutive monthly declines.
Investment in the institutional component rose 2.9 percent to $1.3 billion, with a 7.9 percent increase in Quebec. Strength in that province largely stemmed from educational building projects in the cities of Montréal and Laval.
Industrial construction investment edged up 0.1 percent to $824 million, with gains reported in five provinces. Saskatchewan showed the largest monthly percentage increase (+11.5 percent), reflecting investment in utility and agricultural buildings.
Overall, non-residential construction investment rose 1.8 percent to $4.8 billion. Despite eight increases since the beginning of the year, non-residential investment was 6.3 percent lower than pre-pandemic values.
Third-quarter investment drops 7.5 percent
Total investment in building construction decreased 7.5 percent to $53.0 billion in the third quarter, following substantial growth over the previous four quarters.
Residential construction decreased 10.5 percent compared with the second quarter, with declines in both single- and multi-unit investment. All provinces posted declines, with the largest in Ontario and Quebec.
Non-residential investment increased 1.8 percent to $14.1 billion, the third consecutive quarterly increase. Institutional building construction in Ontario and Quebec led the way, partly reflecting increased investment in educational buildings.