Investment in Canadian Building Construction Slips in November

On Monday, Statistics Canada (StatCan) reported that total investment in building construction decreased 0.5% to $21.4 billion (CAD) in November, following a 1.1% decline in October. However, year-over-year, investment remained 2.7% higher.

On a constant dollar basis (2017=100), investment in building construction decreased 0.5% to $12.8 billion. Compared to a year earlier, it was up 0.1%.

Residential Investment

Investment in residential building construction fell 1.1% ($168.1 million) to $14.8 billion in November, driven by declines in four provinces and three territories. Ontario experienced the largest drop of $227.8 million. Conversely, Quebec led the gains among the remaining provinces, with an increase of $84.1 million.

Investment in multi-unit dwelling construction was down 4.8% to $7.5 billion, led by Ontario’s $317.9-million decline. Decreases were also recorded in five other provinces and two territories.

Single-family home construction investment rose 2.9% ($206.4 million) to $7.3 billion. Monthly increases were observed in eight provinces, with Ontario leading the national gains—up $90.0 million.

Nonresidential Investment

Investment in nonresidential building construction increased 1.1% to a record-high $6.6 billion in November. This marks the fourth consecutive monthly increase.

The industrial construction component rose 2.2% ($30.7 million) to $1.4 billion. Commercial construction investment edged up 0.4% to $3.3 billion, while institutional investment increased 1.5% to $1.9 billion, with gains reported in six provinces and all three territories.