Non-residential investment levels reach all-time high in August
Investment in building construction rose slightly in August, as activity in the non-residential sector reached an all-time high.
Statistics Canada reports that overall investment values rose by 0.2% to reach $21.0 billion in August. This follows a drop of 1.6% in July. Compared with August 2023, investment in building construction grew by 7.2%.
Although the sector reported an increase of just 1%, that jump was enough to propel non-residential investment levels to their highest-ever level of $6.4 billion in August.
Institutional construction investment rose 1.3% (+$24.2 million) to reach a record high of $1.8 billion in August. Seven provinces and territories reported increases, with Ontario gaining $18.3 million to record gains for the 14th month in a row.
The industrial component grew 1.9% (+$25.3 million) to $1.4 billion in the month, led by British Columbia (+$14.5 million). Ontario (+$11.6 million) and Alberta (+$6.1 million) also contributed to a rise in the industrial component.
Commercial construction investment grew 0.4% (+$13.7 million) to $3.2 billion in August, driven by British Columbia (+$12.0 million) and Ontario (+$11.5 million).
Investment in residential building construction, meanwhile, contracted slightly – by 0.1% – to reach $14.6 billion in August.
Four provinces reported monthly decreases, led by Quebec (-$126.4 million). These declines were tempered by increases in six provinces and the three territories, with Ontario leading the gains.
Single-family home investment edged up 0.1% (+$9.0 million) to $6.7 billion in August, following a decline of 2.2% in July. Monthly declines in five provinces, led by Ontario (-$29.9 million), were offset by gains observed in the remaining provinces and the three territories.
Investment in multi-unit construction fell 0.3% (-$23.1 million) to $7.9 billion in August, which offset the slight growth in the single-family component. Declines were recorded in five provinces, with Quebec (-$121.9 million) leading the way and marking its second consecutive monthly decrease. These declines were mitigated by growth in Ontario (+$125.5 million), which recorded its third monthly increase in a row.