Investments into Canadian building construction fell slightly in May, marking the first decline in seven months.
According to Statistics Canada, the money pouring into construction projects across Canada cooled off in May, falling by 1.9% to a total of $19.4 billion. For the first time since April of last year, investment into residential construction was down 2.7% to $14.8 billion, as both single-family and multi-unit construction suffered a decrease, particularly in Ontario and Quebec.
Single-family construction fell 2.7% to $8.3 billion, but still remained approximately 60% above pre-pandemic levels. Similarly, multi-unit construction was down 2.6% to $6.5 billion in May, offsetting the notable 13% increase in the month prior.
Conversely, non-residential investment jumped 0.6% to $4.7 billion, as the commercial construction sector reported a 0.8% increase, bringing its total investment to $2.6 billion. The province of Ontario continued its lead in this component, with a number of high-value building projects, including Amazon fulfillment centres, and a Canadian Tire distribution centre in Brampton.
Canadian institutional investment continued its upward rise in May, marking the seventh straight month of gains. This sector was up 1.2% to $1.2 billion, with the province of Quebec leading the increase. On the other hand, seven of the ten provinces reported declines in the industrial construction sector, which fell 0.7% to $837 million in May.
Information for this briefing was found via Statistics Canada. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.