Investment in building construction continues to rise
By Adam FreillCommercial Construction Industrial Institutional Residential
Following slight pullback in summer of 2021, Canada has seen a steady increase in investment since October 2021.
Gains from all components pushed the investment in building construction to $19.1 billion in January, reports Statistics Canada, a gain of 3.4 per cent.
The commercial segment posted a seventh consecutive monthly increase, rising 1.8 per cent to $2.8 billion thanks to strong showings in Ontario and British Columbia and a rise in interest in office buildings and warehouses.
A 3.1 per cent gain in institutional investments in Quebec helped to offset declines in seven provinces. That segment saw a small advance of just over a half per cent to come in at $1.4 billion.
Industrial construction was a bright spot, posting its largest monthly increase since mid-2020. Investment in that segment rose 2.1 per cent to $864 million in January.
Overall, non-residential construction investment increased 1.5 per cent for the month, reaching the $5.0 billion mark for the first time since June 2020.
The residential sector posted its fourth consecutive monthly gain. Construction investment there rose more than four per cent to $14.1 billion in January. The gains reflected high levels of construction intentions in the fourth quarter of 2021.
Investment in single-family homes was up 2.5 per cent to $7.6 billion, while multi-unit construction investment increased six per cent, to $6.5 billion. Saskatchewan was the only province to post a decrease due to a combination of maturing projects and a lower level of new permits.