Investment in Canadian Building Construction Declines in September

Statistics Canada (StatCan) reported today (11-14-22) that investment in building construction in Canada declined 0.6% to $20.9 billion (CAD) in September. On a constant dollar basis (2012=100), investment in building construction continued its downward trend since the last peak recorded in February 2022, decreasing 1.5% to $12.3 billion.

Investment in residential building construction declined 1.3% to $15.4 billion. Single-family home investment fell 1.3% to $8.5 billion. Investment in multi-unit building dropped 1.4% to $7 billion. StatsCan notes that residential construction investment has seem minimal growth since February 2022, with both single-family and multifamily construction remaining relatively stable since February.

Investment in non-residential construction increased 1.6% to $5.4 billion in September, with 8 out of 10 provinces posting gains. The industrial construction investment component increased 2.9% for the month and was up 24.0% year-over-year. Commercial construction investment rose 1.1% to $3.0 billion. Institutional construction investment was 1.6% higher at $1.4 billion.

Q3 Review: The total value of investment in building construction in 22Q3 rose 1.0% to $62.8 billion. This marks the fourth consecutive quarterly increase. Investment in residential buildings increased 0.7%, led by the multifamily construction sector. The non-residential sector increased 2.1% to $16.1 billion.