For the first time on record, investment in building construction rose by 2.8%, reaching a total $16 billion in January, amid continued strength in Canada’s residential sector.
According to Statistics Canada, residential construction investment increased by 3.9% to $11.6 billion in January, following a record-high set in the previous month. Gains in this category were noted across all provinces except for Manitoba, with Ontario being the largest contributor. For the fourth straight month, single-unit construction was up 4%, increasing eight times over the past nine months. Likewise, Multi-unit construction also recorded a notable increase, rising by 3.7% at the beginning of the year amid continued strength in new construction as well as renovations on apartment projects.
On the other hand, non-residential construction investment remained relatively flat in January, at a total of $4.4 billion. Institutional construction investment rose by 0.6%, with increases being noted across seven provinces. Renovations at a major hospital in Newfoundland and Labrador, as well as construction at a Community College in Nova Scotia were among the projects that contributed to growth in this category.
In the meantime, investment in commercial building construction edged up by 0.2%, as gains in five Canadian provinces largely offset losses in other regions. For the third consecutive month, Ontario reported gains in this category, amid a surge in construction of office buildings in Ottawa and Toronto, as well as Amazon’s ongoing Project Python. Conversely, industrial construction investment dropped by 0.4% to $804 billion, marking the second straight month of declines. In fact, investment in this category fell to the lowest since January 2018, with the except of April 2020 amid the Covid-19 economic shutdown.
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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.
