Canadian Investment in Building Construction Declines for Fourth Consecutive Month in August

Statistic Canada (StatsCan) reported on Wednesday (10-13-21) that investment in building construction declined for the fourth consecutive month, falling -2.0% in August to $17.7 billion (CAD). Residential construction was down -2.9% for the month, while investment in non-residential construction edged up 0.6%. On a constant dollar basis (2012=100), investment in building construction declined -2.6% to $12.7 billion in August.

Residential construction investment decreased -2.9% in August, with declines posted in every province except for a modest increase in Nova Scotia. Investment in single family homes was down -2.6% to $7.0 billion, with Quebec, Ontario, and British Columbia posting the largest declines. Despite a fourth consecutive monthly decrease, single unit construction was 25.6% higher than a year earlier. Multi-unit construction investment declined in all provinces — overall down -3.3% nationally to $6.0 billion in August.

Non-residential construction investment rose 0.6% in August to $4.7 billion. Institutional investment posted a 10th consecutive monthly increase (+1.8% to $1.3 billion), driven by gains in Ontario (+4.3%) and Quebec (+2.2%). This was the highest level of investment in institutional construction since March 2012. Commercial investment was mostly unchanged in August (+0.1%), with gains in seven provinces offsetting the declines in Ontario (-0.5%), British Columbia (-1.3%), and Nova Scotia (-2.4%). Industrial construction edged up 0.2% for the month, led by investment in Ontario.