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.
FEA compiles the Wood Markets News from various 3rd party sources to provide readers with the latest news impacting forest product markets. Opinions or views expressed in these articles do not necessarily represent those of FEA.