Investment in Building Construction Dipped 1.7% in Sept

Investment In Building Construction - September 2020

Nov 11, 2020

Total investment in building construction decreased 1.7% to $15.2 billion in September, after reaching a record high in August. This can be attributed to decreases in the non-residential sector (-8.5% to $4.5 billion) which were partially offset by increases in the residential sector investment (+1.6% to $10.7 billion). Six provinces reported declines in September, with the largest in Quebec and Ontario. 

On a constant dollar basis (2012=100), investment in building construction decreased 1.8% to $12.4 billion in September.

Non-residential investment slips lower

Non-residential investment dropped by 8.5% to $4.5 billion, the third consecutive monthly decline after peaking in June 2020. The commercial, industrial and institutional components of non-residential building construction all fell to the lowest levels seen since April 2020. Ontario (-9.5% to $1.8 billion) and Quebec (-15.2% to $1.0 billion) accounted for the majority of the provincial declines in all three non-residential components. 

Investment in commercial building construction was down 11.3% to $2.6 billion in September. Newfoundland and Labrador (+0.4%) was the only province to report an increase. 

Investment in industrial building construction fell 5.6%, with every province reporting decreases. Quebec reported the largest decline, but remained above pre-COVID-19 levels in this component.
Nationally, the institutional component declined 3.7%, despite gains in five provinces.

Slight increase in residential construction investment

Overall, investment in residential construction was up 1.6%, led by multi-unit investments. Multi-unit construction rose for the fifth consecutive month with gains in seven provinces. Manitoba and Quebec led the advance with both new construction and renovation projects on apartment buildings. The largest declines were reported in British Columbia (-4.1%), continuing a downward trend following the peak reached in May 2019. 

Single unit investment in building construction was largely unchanged in September (-0.6%) after four consecutive monthly increases from May through August. Declines reported in five provinces were mostly offset by gains in Newfoundland and Labrador (+8.5%), New Brunswick (+5.8%), British Columbia (+1.8%) and Ontario (+0.2%).

Quarterly investment bounces back

Investment in building construction saw strong growth of 25.7% in the third quarter, bouncing back from a substantial decline (-19.5%) in the second quarter of 2020, impacted by COVID-19-related shutdowns. All components in the residential and non-residential sectors showed growth compared with the previous quarter. While investment in both single and multi-unit construction has rebounded from the second quarter to $15.6 billion, multi-unit investment, which reached a record high on a quarterly basis, has been surpassing single-unit investments since the first quarter of 2020. 

The commercial (+13.8% to $8.7 billion) and industrial (+5.1% to $2.6 billion) components of non-residential investment have not yet returned to pre-COVID-19 levels on a quarterly basis. However, the institutional component (+7.5% to $3.5 billion) has surpassed pre-COVID-19 levels.

Provincially, Ontario and Quebec, which accounted for more than three-quarters of the gain, led the quarterly growth.

Source: Statistics Canada, www150.statcan.gc.ca/n1/daily-quotidien/201109/dq201109a-eng.htm?CMP=mstatcan

Related Articles


Changing Scene

  • E.B. Horsman & Son Announces Maxim Laberge as New Process Instrumentation Manager

    E.B. Horsman & Son Announces Maxim Laberge as New Process Instrumentation Manager

    EB Horsman is excited to welcome Maxim Laberge as its new Process Instrumentation Manager. Maxim brings over 25 years of experience in electrical, instrumentation, and control systems, with a proven record in business development, client engagement, and strategic project leadership. He is known for his consultative approach, combining technical insight with a strong focus on… Read More…

  • E.B. Horsman & Son Announces Stephen Murray as New Calgary Branch Manager

    E.B. Horsman & Son Announces Stephen Murray as New Calgary Branch Manager

    EB Horsman & Son is pleased to announce the appointment of Stephen Murray as Branch Manager of its Calgary location, effective Tuesday, September 3, 2025. Stephen brings over two decades of experience in the industrial automation sector, where he has built a strong reputation for driving growth, expanding market presence, and developing high-performing teams. His… Read More…


Peers & Profiles