Non-residential building construction investment up in Q2 2012
July 17, 2012 by Andrew Snook
According to a recent Statistics Canada report, increased investment in commercial and industrial components pushed non-residential building construction up to $11.2 billion in the second quarter of 2012, for an increase of 1.8 per cent. The increase follows three consecutive quarters of decline, with Ontario, Alberta and Quebec experiencing the largest gains.
Ontario and Alberta’s increases in investment were largely fuelled by the commercial and industrial components, while Quebec’s gains occurred in commercial and institutional investment.
New Brunswick and Prince Edward Island (P.E.I.) experienced declines in all three components, while Newfoundland and Labrador experienced decreased spending in industrial and institutional components.
Investment increased in 17 of the 34 metropolitan areas, with Toronto, Ont., Montréal, Que. and Vancouver, B.C. experiencing the largest gains.
All three components were up in Toronto and Vancouver, while Montréal’s gains were fuelled by the commercial and industrial components.
St. Catharines–Niagara, Ont. and Greater Sudbury, Ont. experienced the largest decreases in investment.
Quebec leads commercial component gains
The commercial component was up 2.3 per cent from Q1 2012 to $6.7 billion. The gains were fuelled by increases in investment in every province, with the exceptions of New Brunswick and P.E.I.
Quebec experienced the largest gains in commercial investment, jumping 4.2 per cent to $1.2 billion, fuelled largely by the construction of office and retail buildings.
Ontario and Alberta also experienced significant gains in Q2 2012, up 2.1 per cent (for a total of $2.4 billion) and 1.4 per cent (for a total of $1.6 billion) respectively.
Industrial component experiences third consecutive quarterly gain
Seven provinces experienced gains in industrial investment, pushing the industrial component up 6.2 per cent to $1.4 billion in Q2 2012 for its third consecutive quarterly gain.
The biggest gains were experienced in Alberta, where the component jumped 11.2 per cent to $333 million, largely due to investment in utility and maintenance buildings.
Ontario and B.C. also experienced large gains in Q2 2012, due to increased investment in manufacturing and mining facilities. Ontario experienced a 6.7-per cent increase to $474 million, while B.C. was up 22.4 per cent to $137 million.
Newfoundland and Labrador experienced the largest decline in the industrial component, down 21.9 per cent to $74 million, due to declines in several industrial building categories.
Institutional component down
Investment in the institutional component was down 1.1 per cent to $3.1 billion in Q2 2012, when compared to the previous quarter, for its ninth consecutive quarterly decline.
Seven provinces experienced declines in investment in the component, when compared to the previous quarter, with Alberta (down 5.3 per cent to $271 million) and B.C. (down 3.5 per cent to $348 million) experiencing the largest declines.
Quebec experienced the largest gains in investment in the institutional component, up 2.8 per cent to $497 million, largely due to increased spending in educational facilities.
To view the full report, click here.
Source: Statistics Canada