Investment in building construction edged up in June, thanks in large part to a bump in activity in Ontario.

Statistics Canada reports that total building construction investment rose by 0.3% for the month, to $20.8 billion. Gains in the non-residential sector (+2.4%) offset a slight loss of 0.4% in the residential sector.

Despite six provinces reporting growth, residential construction investment declined $15.5 billion in June, with Quebec (-6.7%) causing most of the fall. This was the first decline in nine months for residential investment.

Multi-unit construction investment fell 1.6% to $6.9 billion, while investment in single-family homes continued to show strength, increasing 0.7% to $8.6 billion in June, with gains in six provinces.

On the other side of the ledger, investment in non-residential construction increased to $5.3 billion for the month.

Commercial investment advanced 2.7% to $3.0 billion, led by Ontario (+4.1%). After falling for the first time in 13 months in May, the commercial component continued its upward trend.

Institutional construction investment rose 0.7% to $1.4 billion with six provinces reporting gains, led by Ontario (+3.8%); investment in the industrial component increased 3.7% to $974 million, the highest monthly value increase since May 2020.

Q2 investment rises 3.3%

The total value of investment in building construction rose 3.3% to $62.3 billion in the second quarter, the third consecutive quarterly increase. Investment for residential buildings reached $46.4 billion, largely due to increased spending on multi-unit construction. The non-residential sector rose 2.6% to $15.8 billion.

Ontario's growth in the second quarter remained flat when compared with the first quarter of the year, with strikes among several construction trades impacting investment in all components. Industrial construction was the only component to show notable growth for this province.

Residential investment in the single-unit component increased for the third quarter in a row, rising 2.6% for the quarter to $25.7 billion. The multi-unit component has increased for the previous three quarters, rising 4.5% this quarter, with most of the growth coming from Quebec.

Investment in the non-residential sector was up 2.6% to $15.8 billion, continuing growth from the previous quarter. The commercial component, which contributed the most to the non-residential sector, gained 2.8% to $8.8 billion, its fifth consecutive quarterly growth. Institutional construction edged up 0.5% to $4.2 billion, up for the sixth consecutive quarter. The industrial component rose 5.4% to $2.9 billion, with Ontario (+8.3%) leading the gains.