January a good month for building construction investment
By Adam FreillCommercial Construction Industrial Institutional Residential
All components, both residential and non-residential, started the year off with gains as residential rebounds.
Investment in building construction increased 1.5 per cent in January, landing at $20.4 billion, reports Statistics Canada. All components posted gains for the month. The residential sector was up 1.9 per cent, reaching $14.9 billion, while the non-residential sector was up a half-per-cent, hitting $5.6 billion.
The jump in residential building construction was a welcomed rebound following the four consecutive monthly declines recorded to end 2022. Single-family home investment was up 2.4 per cent to $8 billion. Multi-unit construction increased 1.3 per cent to $6.8 billion. Ontario accounted for much of the gains for both segments.
The non-residential construction generated small monthly gains but continued to climb in January. Industrial construction investment rose 1.1 per cent on the month, reaching $1.1 billion. That was a rise of 25 per cent over January of 2022, and the 14th consecutive monthly increase.
Commercial construction edged up 0.1 per cent to sit at $3.1 billion. And institutional construction investment was up 0.7 per cent as it reached $1.4 billion. Overall, eight provinces reported gains in institutional values, with New Brunswick posting its eighth consecutive monthly increase. Conversely, Newfoundland and Labrador posted its 15th consecutive monthly drop.