Investment in non-residential building construction
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Investment in non-residential building construction remained at $11.2 billion in the second quarter, edging up 0.1% from the first quarter after growing 1.7% on average in the five previous quarters. Gains in commercial and industrial building construction were offset by a decline in the institutional component.
Among the six provinces that posted gains in the second quarter, Quebec posted the largest increase followed closely by British Columbia. In both provinces, the gains were mainly a result of higher spending on construction of commercial buildings.
Alberta recorded the largest decline as a result of lower spending in the institutional component, which more than offset gains in commercial and industrial building construction.
Investment was up in 18 of the 34 census metropolitan areas. St. Catharines–Niagara and Toronto posted the largest gains, mainly as a result of higher spending on institutional projects.
In contrast, the largest declines occurred in Edmonton and Saskatoon, as a result of decreases in the institutional and commercial components.
Investment in commercial building construction reached $6.5 billion in the second quarter, up 0.8% from the previous quarter. This was the sixth consecutive quarterly increase and reflected higher spending in the construction of office, transportation buildings, and retail and wholesale outlets in several provinces.
Note to readers
Unless otherwise stated, this release presents seasonally adjusted data, which eases comparisons by removing the effects of seasonal variations.
Investments in non-residential building construction exclude engineering construction. This series is based on the Building Permits Survey of municipalities, which collects information on construction intentions.
Work put-in-place patterns are assigned to each type of structure (industrial, commercial and institutional). These work patterns are used to distribute the value of building permits according to project length. Work put-in-place patterns differ according to the value of the construction project; a project worth several million dollars will usually take longer to complete than will a project of a few hundred thousand dollars.
Additional data from the Capital and Repair Expenditures Survey are used to create this investment series. Investments in non-residential building data are benchmarked to Statistics Canada's System of National Accounts of non-residential building investment series.
For the purpose of this release, the census metropolitan area of Ottawa–Gatineau (Ontario/Quebec) is divided into two areas: the Ottawa part and the Gatineau part.
Commercial investment increased in four provinces. The largest gain occurred in Alberta, where investment increased 5.4% to $1.4 billion, while in Quebec commercial investment rose 3.2% to $1.1 billion. In Alberta, the gain was led by higher spending in the construction of transportation and office buildings. In Quebec, higher investment in office buildings and retail and wholesale outlets were behind the advance.
Ontario posted the largest decline as a result of lower spending spread among several commercial building categories.
Investment in industrial projects totalled $1.3 billion in the second quarter, up 0.8% from the previous quarter and the fifth consecutive quarterly gain. Growth in this component was mainly due to the construction of manufacturing plants in eight provinces, as well as maintenance buildings in six provinces.
Provincially, Quebec and British Columbia contributed the most to the rise in the industrial component. In both provinces, the increase came mainly from spending on manufacturing and maintenance buildings.
In contrast, Ontario had the largest decline as a result of lower spending in the majority of industrial building categories, which offset gains in the construction of manufacturing plants.
Spending on institutional projects continued its downward trend for a fifth straight quarter, falling 1.3% to $3.4 billion in the second quarter. Lower spending on the construction of educational facilities in eight provinces (particularly in Alberta) was the main factor behind the decline in the institutional component.
Institutional investment was up in five provinces. The largest increases were in Ontario, Manitoba and British Columbia, where higher investment occurred in several institutional building categories.
Available on CANSIM: table 026-0016.
Definitions, data sources and methods: survey number 5014.
More detailed data on investment in non-residential building construction are also available in free tables online. From the Key resource module of our website choose Summary tables.
For more information, or to enquire about the concepts, methods or data quality of this release, contact Bechir Oueriemmi (613-951-1165; email@example.com), Investment and Capital Stock.
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