Industrial and institutional investments rise in January

Investment in non-residential building construction, January 2024. (Source: Statistics Canada, Table 34-10-0286-01 – Investment in Building Construction.)

Investment in non-residential building construction edged forward on the strength of the institutional and industrial segments, but those gains were not enough to offset drops in commercial and the residential components, reports Statistics Canada. Overall, investment in building construction declined 0.9 per cent to $19.7 billion in January. The residential sector fell 1.4 per cent, to $13.6 billion, while investment in the non-residential sector nudged up 0.2 per cent to reach $6.1 billion.

Nationally, investment in detached single-family homes increased 2.1 per cent to $6.7 billion in January, with eight provinces reporting gains. Multi-unit family investment declined 4.5 per cent, however, to land at $6.9 billion. The drop was driven by declines in Ontario as the pace of new construction starts in the province slowed in January.

Investment in the non-residential sector increased for the third consecutive month, reaching a record high. The institutional segment was up $32.3 million to reach $1.7 billion, while the industrial segment rose $7.3 million to hit $1.3 billion. Commercial investment was soft, however, dropping $26.2 million to $3.1 billion. January’s decline in commercial investment represents the seventh consecutive monthly drop. Seven provinces contributed to the negative movement in the segment.

www.statcan.gc.ca