Canadian Investment in Building Construction Slightly Lower in May

Statistics Canada (StatsCan) reported today (7-14-22) that investment in building construction edged 0.2% lower in May to $20.6 billion. The downward movement is the result of many of Ontario’s unionized construction workers being on strike during the month. Excluding Ontario, investment increased 1.1% at the national level. On a constant dollar basis (2012=100), investment in building construction declined 0.2% to 13.0 billion in May.

In May, investment in the residential sector was largely unchanged at $15.4 billion, following robust growth that started in September 2021. Excluding Ontario, the residential sector continued its upward trend, increasing 1.3% in May. Investment in single family homes declined 2.5%, ending its seven-month growth streak. Overall, six provinces reported growth in May, which was offset by declines in four provinces, with Ontario and Quebec causing most of the fall. Multi-unit construction continued to climb, increasing 3.4% to $7.0 billion, with six provinces posting gains, led by Quebec (+10.0%).

Investment in the non-residential sector decreased 0.9% to $5.2 billion in May, with the construction worker strike in Ontario offsetting the gains of eight provinces and driving all three components downwards. Investment in the industrial component edged 0.2% lower to $935 million, with the increase in Quebec (+2.0%) largely offset by the declines in Ontario (-1.2%). The institutional component fell 0.8% to $1.4 billion, with seven provinces reporting declines. Despite gains in eight provinces, the commercial component decreased 1.2% to $2.9 billion based on the strike in Ontario. This was the first decline in thirteen months.