Investment in Canadian Building Construction Increases in August

On Thursday, Statistics Canada (StatCan) reported that investment in building construction edged 0.2% higher to $21.0 billion (CAD) in August, following a 1.6% decrease in July. Year-over-year, investment grew 7.2%.

On a constant dollar basis (2017=100), investment in building construction was virtually unchanged at $12.8 billion in August but grew 4.2% year-over-year.

Residential

Investment in residential building construction edged down $14.1 million, or 0.1%, to $14.6 billion in August. Monthly decreases were recorded in four provinces, led by Quebec, down $126.4 million. These declines were tempered by increases in six provinces and the three territories, with Ontario leading the gains.

Single-family home investment was up $90.0 million, or 0.1%, to $6.7 billion in August, following a decline of 2.2% in July. Monthly declines in five provinces—led by Ontario, down $29.9 million—were offset by gains observed in the remaining provinces and the three territories.

Investment in multi-unit construction declined $23.2 million, or 0.3%, to $7.9 billion in August, which offset the slight growth in the single-family component.

Nonresidential

Investment in nonresidential construction increased $63.2 million, or 1.0%, to $6.4 billion in August—a record high for the sector.

Institutional construction investment increased $24.2 million, or 1.3%, to reach a record high of $1.8 billion in August, driven by Ontario’s gain of $18.3 million and with increases also recorded in six other provinces and territories. Ontario recorded its 14th straight monthly growth in the sector.

The industrial component increased $25.3 million, or 1.9%, to $1.4 billion, led by increases of $14.5 million in British Columbia, $11.6 million in Ontario, and $6.1 million in Alberta.

Commercial construction investment increased $13.7 million, or 0.4%, to $3.2 billion.