Investment in Building Construction Up 1% in September

Nov 27, 2019

Total investment in building construction rose 1.0% from August to $15.6 billion in September. Investment was up for both the residential (+1.2% to $10.8 billion) and non-residential (+0.4% to $4.9 billion) sectors. On a constant dollar basis (2012=100), investment in building construction rose 0.7% to $12.9 billion. Total investment grew 2.4% from the second to the third quarter.

Ontario leads the provinces in residential investment

Investment in the residential sector was up in five provinces in September, led by Ontario (+$89.4 million) and Quebec (+$43.3 million). Nationally, investment in the single (+1.4% to $5.4 billion) and multi-unit (+1.1% to $5.3 billion) dwellings increased compared with August. In Ontario, investment in multi-unit dwellings rose for the fourth consecutive month, up 1.9% in September to $2.1 billion.

Non-residential investment edges up 

Investment in the non-residential sector edged up 0.4% to $4.9 billion in September. The commercial component increased 0.7% to $2.8 billion, with Quebec posting the largest increase (+$11.2 million) due to ongoing developments in the eco-neighborhood of Estimauville in the city of Québec. Nationally, the industrial and institutional components were largely unchanged.

Third quarter 2019: Investment in single homes in Ontario up sharply

Total investment in building construction grew 2.4% from the second quarter to $46.4 billion in the third quarter, driven by increased investment in single homes in Ontario (+10.4%).

Investment was up in every component of the non-residential sector in the third quarter with the largest increase in British Columbia (+5.5%).

On an unadjusted basis, quarterly investment in non-residential new construction rose 11.5% year over year to $7.0 billion in the third quarter, reflecting gains in the commercial component (+19.5% to $3.9 billion). 

Investment in residential new construction was largely unchanged year over year at $16.6 billion in the third quarter. Lower investment in singles (-7.3%) and doubles (-2.0%) was offset by increases in row homes (+13.6%) and apartments (+5.2%).

Source: Statistics Canada, https://www150.statcan.gc.ca/n1/daily-quotidien/191122/dq191122b-eng.htm