Canadian Investment in Building Construction Declines in June and Q2

Statistics Canada (StatCan) reported on Friday (8-18-23) that overall investment in building construction declined 3.1% to $18.0 billion (CAD) in June. After adjusting for inflation (2012=100), investment in building construction fell 3.4% to $10.3 billion.

Residential:

Residential construction investment declined 4.5% to $12.1 billion in June, marking the fourth consecutive monthly decline in this sector.

Single-family home construction dropped 5.7% to $6.2 billion. Led by Ontario—which posted a 5.8% decline to $5.1 billion—eight out of ten provinces saw declines in June.

Multi-unit construction also declined in June, falling 3.1% to $5.9 billion. This is the lowest level since September 2021 and the eighth consecutive monthly decline.

Non-Residential:

Investment in non-residential construction inched 0.2% lower to $5.9 billion in June, the result of widespread declines in Quebec—down 3.1%, or $1.3 billion.

Commercial construction was a bright spot—up 0.8% to $3.3 billion—while the industrial sector dropped 1.4% to $1.2 billion, and the institutional sector fell 1.4% to $1.4 billion.

Q2 Summary:

Overall, in 2023Q2, investment in building construction fell 5.2% to $55.7 billion. StatsCan says the loss was entirely due to a decline in residential construction, which fell 8.2% to $37.9 billion. The non-residential construction sector expanded 1.8% to $17.8 billion.