View the most recent version.

Industrial Product Price Index, Selected Construction Materials Series

(See table 2)

In the third quarter of 2007, the four largest quarterly price change amongst the most important commodities used in construction included three increases; these being plywood from other softwood (+8.1%), particle-board and wafer-board (+7.8%) and plywood from Douglas fir (+6.2%). The fourth was a decline for structural steel shapes (-3.6%).

The price for plywood from other softwood saw a strong monthly price increase in July followed by little change in August and a small increase in September. Prices for particle-board and wafer-board took a large leap in July, followed by a strong drop in August and a slight one in September. The price for plywood from Douglas fir followed a similar pattern to that of other plywood, with a strong increase in July, little change in August and a small increase in September. Although the price level for structural steel shapes showed an overall decrease of -3.6 percent in the third quarter, prices during the months making up the quarter showed relatively little change overall, drifting a little down in July, a up slightly in August and dropping a small amount in September. The quarterly drop was mainly due to the declines witnessed in May and June.

The four largest year-over-year changes were increases for concrete reinforcing bars (+9.3%), metal roofing and siding (+7.5%) and for plywood from other softwood (+6.5%). There was also a 9.2% decline for insulated wire and cable, not exceeding 1000 volts.

The year-over-year change in the price level of concrete reinforcing bars in the third quarter dropped to +9.3% from a peak of +19.5% in the second quarter. This ended a string of increases in the year-over-year change which had begun in the fourth quarter of 2005. The year-over-change had risen from -17.7% in the third quarter of 2005 to +19.5% in the second quarter of 2007.

The year-over-year change in the price of insulated wire and cable, not exceeding 1000 volts continued to decline, dropping to -9.2% from -4.8% in the second quarter. The year-over-year change has been declining since its most recent peak of +31.4% in the third quarter of 2006. For its part, the price level of insulated wire and cable not exceeding 1000 volts tended to weaken from September 2006 until February 2007, and then remained relatively unchanged thereafter, except for a slight increase in April.

The year-over-year change in the price of metal roofing and siding declined to +7.5% from the third quarter of 2007 from +9.0% in the previous quarter. Previous to this drop, it had been increasing from its most recent low, -0.3% in the first quarter of 2006.

The year-over-year change in the price level of plywood from other softwood rose to +6.5% in the third quarter of 2007. Recently it had declined from its previous local high of +4.2% in the fourth quarter of 2006, to -0.4% in the first quarter of 2007 and -1.4% in the second quarter of 2007.

Construction Union Wage Rates Index

(See table 3)

In the third quarter of 2007 the Canada Total Construction Union Wage Rates Index (including supplements) increased 0.3% to 140.1 (1992=100) compared with the previous quarter, and was 1.0% higher compared with the third quarter of 2006.

On a regional basis, the index for the Quebec Region registered the highest quarterly change (+1.0%) followed by the British Columbia Region (+0.5%) and the Atlantic Region (+0.1%). The Ontario Region and the Prairie Region remained unchanged from the previous quarter.

New Housing Price Index

(See table 5)

The New Housing Price Index (1997=100) rose 2.0% in the third quarter of 2007 down from the previous increase of 2.2%. Prices rose across the country with the Prairie Region continuing to lead with 5.0%, followed by the Atlantic Region (+1.7%), British Columbia (+1.5%), Quebec (+1.0%) and Ontario (+0.9%).

In the Prairie Region, Saskatoon (+13.6%) led the way followed by Winnipeg and Edmonton (both +8.8%), Regina (+8.1%) and Calgary (+1.1%). The robust economy in all of the Prairie Provinces continued to create upward pressure on prices. Increased costs of building materials and labour helped to push up prices. Higher land values associated with reported shortages of developed land along with higher development costs also contributed to increased prices.

In the Atlantic Region, St. John’s (+2.8%) had the largest increase followed by Halifax (+1.9%), Saint John, Fredericton and Moncton (+0.8%) and Charlottetown (+0.3).

In British Columbia, Vancouver (+1.6%) and Victoria (+0.6%) both registered increases. Home builders in Vancouver cited a healthy housing market as the main factor for the price increases. In both Vancouver and Victoria, increases in land prices were also a factor.

In Quebec, both Montréal (+1.1%) and Québec City (+0.5%) registered increases. Higher prices for building materials and labour were the main factors in both metropolitan areas. In both Montreal and Quebec City land prices were also a contributing factor.

Prices rose in all but one of the metropolitan areas surveyed in Ontario. Favourable market conditions along with higher prices for labour, building materials and land were among the reasons for the increases. London (+1.5%), Toronto and Oshawa (+1.1%) and St. Catharines-Niagara (+1.0%) registered the highest increases followed by Kitchener (+0.7%), Greater Sudbury and Thunder Bay (+0.6%), Ottawa-Gatineau (+0.3%) and Hamilton (+0.1%). Windsor showed a decrease of (-1.0%) due mostly to slower market conditions.

Apartment Building Construction Price Index

(See table 6)

The composite price index for apartment building construction was 156.2 (1997=100) in the third quarter, up 1.4% from the second quarter, and up 8.5% from the third quarter of 2006. The quarterly increase was mostly the result of higher labour and materials costs, and a strong market for building construction.

Western Canada recorded the highest quarterly changes, led by Edmonton (+2.6%), followed by Vancouver (+2.5%) and Calgary (+2.2%). Lower price increases were measured in Eastern Canada, with both Toronto and Ottawa–Gatineau, Ontario part recording advances of 0.7%, followed by Halifax and Montréal (+0.4% each).

Calgary experienced the highest gain (+18.1%) from the third quarter of 2006, followed by Edmonton (+17.9%), Vancouver (+13.8%), Toronto (+5.0%), Ottawa–Gatineau, Ontario part (+4.6%), Halifax (+3.6%) and Montréal (+3.2%).

Non-residential Building Construction Price Index

(See table 7)

The composite price index for non-residential building construction increased 1.6% from the previous quarter to 159.9 (1997=100) in the third quarter, and 9.6% from the third quarter of 2006. As in the first half of 2007, the quarterly increase was mostly the result of higher labour and material costs, and the persistent strength of the non-residential building construction market.

Western Canada recorded the highest increases from the second quarter of 2007, with Edmonton posting a 3.3% increase, followed by Vancouver (+2.7%) and Calgary (+2.5%). Smaller upward movements were recorded in Eastern Canada, with Halifax recording a rise of 0.8%, followed by Toronto (+0.7%), Ottawa–Gatineau, Ontario part (+0.5%) and Montréal (+0.2%).

Edmonton had the largest change (+17.9%) from the third quarter of 2006, followed by Calgary (+17.1%), Vancouver (+13.3%), Ottawa–Gatineau, Ontario part (+6.5%), Toronto (+6.4%), Halifax (+5.9%) and Montréal (+3.4%).

Machinery and Equipment Price Index

(See table 8)

The Machinery and Equipment Price Index (MEPI) stood at 86.8 (1997=100) in the third quarter, down 3.2% from the second quarter. The import component index fell 5.0%, while the domestic index edged down 0.3%. Compared with the third quarter of 2006, the total MEPI was down 3.1%, as the import index decreased 5.0%, while the domestic index rose slightly by 0.1%.

In the third quarter, all industries recorded decreases in the prices of machinery and equipment purchased. Manufacturing industries (-3.2%) contributed the most to the total MEPI quarterly decrease. Among the sector's subcomponents, the largest contributors to the quarterly decrease were transportation equipment manufacturing (-3.3%), primary metal and fabricated metal product manufacturing (-3.4%) and paper manufacturing (-2.6%). The second largest contributor to the total quarterly decrease was finance, insurance and real estate (-3.8%), with its sub-component, finance and insurance, falling 3.5%.

Among commodities, price decreases for automobiles, excluding passenger vans (-6.6%) and other industry-specific machinery (-3.9%), were the largest contributors to the quarterly decrease.

The US dollar depreciated 4.9% against its Canadian counterpart in the third quarter of 2007.

Electric Utility Construction Price Index

(See table 9)

Annual 2006 (revised) and the first half 2007 (preliminary)

Construction costs for distribution systems increased by 3.5% during the first half of 2007. The increase in the material component for this period (+6.5%) was the major contributor to this change. The 2006 data for distribution systems represented an advance of 6.6% over 2005.

Construction costs for the transmission line system series rose 4.7% during the first half 2007 compared with a 4.0% increase for all of 2006. The transmission line component climbed 3.1% during the same period in 2007, while in 2006 there was a 4.1% annual gain. The rise in prices of materials (+4.9%) significantly contributed to this increase. The substation component rose by 5.7% in the first half of 2007 following a 3.9% increase the previous year, its station equipment subcomponent (+7.2%) posting the largest gain.

Infrastructure Construction Price Index

An analytical price index series measuring annual changes in the cost of municipal infrastructure construction funded by development charges has been developed by Statistics Canada on behalf of the City of Ottawa. The annual index for 2007 was 124.7 (2001 =100), an increase of 4.4% over the annual index of 119.5 for 2006. The annual indexes for 2005, 2004, 2003 and 2002 were 112.8, 107.7, 105.1 and 102.2 respectively as previously published.