Investment in Building Construction Edged Down 0.4% in October

Investment in Building Construction - October 2020

Dec 10, 2020

Total investment in building construction edged down 0.4% to $15.2 billion in October, following a 1.5% decrease in September. Investment in the non-residential sector fell for the fourth consecutive month in October, remaining below pre-COVID-19 levels. Conversely, investment in the residential sector continued to strengthen for the sixth straight month. 

On a constant dollar basis (2012=100), investment in building construction edged down 0.4% to $12.4 billion in October.

Non-residential investment continues to show weakness 

Non-residential investment continued to decline for the fourth consecutive month, down 3.2% to $4.4 billion in October. Investment in commercial building construction accounted for the largest decline of the three components for the month, down 4.7% to $2.5 billion. All provinces and territories were down, with the largest drop in Quebec (-13.4% to $443 million). Over the first 10 months of 2020, Quebec has yet to issue a permit over $100 million for a commercial project, compared with four commercial permits over $100 million for the same period of the previous year. 

A decline of 1.7% was reported in industrial building construction investment in October. Small declines were reported in eight provinces. Meanwhile, Prince Edward Island was up 19.1% to $8.2 million, with this increase partly attributed to the construction of an incubator manufacturing facility at BioCommons Research Park in Charlottetown.

Institutional building construction investment reported a slight decline of 0.8%, with the largest decreases seen in Quebec (-1.9%), followed by Ontario (-1.2%). Gains in British Columbia (+2.2%) and Newfoundland and Labrador (+6.6%) helped to offset these declines. A $43 million long-term care home contributed to the growth in Newfoundland and Labrador.

Residential construction up for a sixth consecutive month

Investment in residential construction edged up 0.7% in October, a sixth consecutive monthly gain. 

Single-unit construction investment led the growth, increasing 3.7% to $5.5 billion with every province reporting gains except for Prince Edward Island. Ontario (+3.3%) and Saskatchewan (+27.7%) accounted for the majority of the increase. Investment in the construction of single family homes was 7.7% higher in October than in February 2020, before the start of the pandemic.

Multi-unit construction investment fell for the first time in five months in October (-2.1%) with declines in seven provinces. Manitoba (-24.6%) and Alberta (-9.2%) reported the largest drops, while Ontario, Quebec and Prince Edward Island reported the only gains for the month in this component. New construction and renovations for apartments in the city of Charlottetown contributed to the growth in Prince Edward Island.

Source: Statistics Canada, www150.statcan.gc.ca/n1/daily-quotidien/201207/dq201207a-eng.htm

Related Articles


Changing Scene

  • New E.B. Horsman & Son Northwest Edmonton Distribution Centre Opening Soon

    New E.B. Horsman & Son Northwest Edmonton Distribution Centre Opening Soon

    The countdown begins for E.B. Horsman & Sons’ New Distribution Centre opening date on May 6th. This expansion marks an exciting chapter in EB Horsman’s journey across Western Canada. As the company continues to scale it’s operations, the opening of the New Distribution Centre in Northwest Edmonton will enhance the company’s efficiency, improve service delivery, and meet the… Read More…

  • Southwire Announces Investment in Condoit

    Southwire Announces Investment in Condoit

    In support of Southwire’s focus on strategic growth, the company is pleased to announce an investment in Condoit, a software platform for electrical design, analysis and collaboration. Condoit, based in Birmingham, Ala., has developed a software application to dramatically simplify the process of documenting “as-built” drawings of electrical systems. Condoit’s software aids in the design of… Read More…


Peers & Profiles

  • Taken from Graybar Canada Linkedin Post Enjoy a glimpse of the wonderful moments from Graybar Canada’s recent customer appreciation BBQs! The company was grateful for the smiles and connections made with our amazing customers and vendors. They are looking forward to the next gathering! Source Read More…

  • Article taken from Linkedin Post Electrozad is thrilled to spotlight their Chatham Branch and recognize their exceptional efforts in cleaning up their community. The team took time to coordinate a community clean-up around their branch. This is a commendable initiative that not only helps maintain the cleanliness and hygiene around the branch but also contributes… Read More…