Stock and consumption of fixed capital, 2017
The volume of Canada's non-residential and residential net capital stock increased 1.9% in 2017. In value, Canadian net capital stock totalled $4.9 trillion.
Non-residential capital stock, which includes non-residential building and engineering structures, machinery and equipment as well as intellectual property products, represented 50.7% of the total.
Residential capital stock, which includes new residential construction, renovations to existing structures and transfer costs, accounted for the remaining 49.3%.
The share of Canadian residential capital stock posted its largest increase since 2003, mainly due to higher residential construction prices.
Non-residential capital stock
Non-residential capital stock was 1.0% higher in 2017 than in 2016.
The stock of non-residential engineering construction rose 1.9%, following a 1.8% gain in 2016, while the stock of non-residential building construction increased 0.9%.
The stock of machinery and equipment edged down 0.1% in 2017, as 6 out of the 11 asset groupings decreased. This followed a 1.7% decline the previous year. For the third consecutive year, the most significant decrease was in industrial machinery stock. Transportation equipment stock had a second consecutive year of notable increases, rising 5.5% in 2017.
The stock of intellectual property products was down 1.7% in 2017. Mineral exploration and valuation led the decrease, posting a fourth consecutive decline. Stock of software increased 0.8% following a 0.4% decline in 2016.
A decrease in the capital stock occurs if depreciation is larger than the flow of new investment.
Non-residential capital stock rose in 11 provinces and territories and declined in Alberta and the Northwest Territories. Nunavut had the strongest growth (+6.7%), the result of an increase in non-residential engineering construction in the mining subsector, followed by Newfoundland and Labrador (+4.7%), Manitoba (+3.5%) and British Columbia (+2.7%).
Alberta's share of capital stock continues to decline
In 2017, Alberta was the lone province with a declining share of Canada's non-residential capital stock. It was the third straight year of decline, the result of continued lower investment in the oil and gas extraction subsector. Although growth in Alberta's capital stock decelerated, the province continued to hold the largest share of non-residential capital stock in Canada in 2017, at 30.2%.
British Columbia posted the largest increase in its share of Canada's non-residential capital stock, up to 11.8%. The increase was mainly the result of the strong growth in oil and gas engineering construction.
In 2017, 24.8% of total non-residential stock in Canada was held by the government and non-profit sectors, an increase from 2016, while 28.1% was held by corporations in the mining, quarrying and oil and gas extraction industries. In 2017, these industries accounted for 67.1% of non-residential capital stock in the Northwest Territories, 64.6% in Nunavut, 60.3% in Alberta, 48.2% in Newfoundland and Labrador, and 46.8% in Saskatchewan.
Residential capital stock
Residential capital stock rose 2.8% in 2017, the same growth rate as the previous two years. Overall, residential capital stock totalled $2.4 trillion in value in 2017. Over two-thirds was the result of stock in new homes, while the remainder was due to renovations on existing residential structures.
In 2017, every province and territory posted a gain in residential capital stock, led by British Columbia, followed by Prince Edward Island and Manitoba.
Note to readers
This release reflects revised estimates of investment flows and prices in accordance with the latest revision of the Canadian System of Macroeconomic Accounts.
The classification of non-residential capital stock is based on the final demand classification used in the supply and use tables.
Estimates of non-residential and residential investment, depreciation and the associated net stocks are available by geographical breakdown on a current price basis, 2012 constant price basis (2012 asset price = 100) and chained (2012) dollar basis. Non-residential estimates of depreciation and stock are available by industry and by asset, using linear, geometric and hyperbolic methods. Residential estimates are available by type of investment using geometric methods.
The Latest Developments in the Canadian Economic Accounts (13-605-X) is available.
The User Guide: Canadian System of Macroeconomic Accounts (13-606-G) is also available.
The Methodological Guide: Canadian System of Macroeconomic Accounts (13-607-X) is also available.
For more information, or to enquire about the concepts, methods or data quality of this release, contact us (toll-free 1-800-263-1136; 514-283-8300; STATCAN.infostats-infostats.STATCAN@canada.ca) or Media Relations (613-951-4636; STATCAN.mediahotline-ligneinfomedias.STATCAN@canada.ca).
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