Construction investment values fall in July
Investment in building construction dropped in July, thanks in part to the third month in a row in which residential-sector construction values fell.
Statistics Canada reported on September 13 that the total value of construction investment in the month was $18.1 billion—1.7 percent less than in June. Losses in the residential sector were not entirely offset by a gain in non-residential sector values.
Since peaking in April, values in the residential sector have trended down. July saw a drop in investment value of 2.6 percent. Declines in all provinces brought investment in single-family homes down 4.0 percent to $7.2 billion. Ontario posted the largest decrease after reaching a record high in April 2021, followed by Quebec, Saskatchewan and Alberta.
Multi-unit construction investment was down 1.0 percent to $6.2 billion in July, reflecting decreases in seven provinces. Ontario reported the largest decline, followed by British Columbia and Manitoba.
On the other side of the ledger, the value of non-residential construction investment was up 0.9 percent to $4.6 billion.
Institutional investment posted its ninth consecutive increase (+2.2 percent to $1.3 billion), with most provinces and territories reporting gains. Construction of a York University building in Ontario as well as ongoing construction of secondary schools in Quebec and British Columbia contributed to the national growth.
Commercial investment was up 0.6 percent to $2.5 billion in July. Alberta posted the highest increase (+6.0 percent) due to higher spending on office buildings and buildings for trade and services.
Industrial investment was the only non-residential component to post a decline in July, edging down 0.2 percent. Quebec decreased for a second month, while Alberta and Prince Edward Island also had notable declines.
Featured image: Investment in non-residential building construction, July 2021. (Statistics Canada)