Non-residential Sector Leads Construction Investment Decrease

Total investment in building construction decreased 1.7 per cent to $15.2 billion in September, after reaching a record high in August, says Statistics Canada. This can be attributed to decreases in the non-residential sector (8.5 per cent to $4.5 billion) which were partially offset by increases in the residential sector investment (1.6 per cent to $10.7 billion). Six provinces reported declines in September, with the largest in Quebec and Ontario. For non-residential investment, this is the third consecutive monthly decline after peaking in June 2020. The commercial, industrial, and institutional components of non-residential building construction all fell to the lowest levels seen since April 2020. Investment in commercial building construction was down 11.3 per cent to $2.6 billion in September. Newfoundland and Labrador was the only province to report an increase. Investment in industrial building construction fell 5.6 per cent, with every province reporting decreases. Nationally, the institutional component declined 3.7 per cent, despite gains in five provinces. Manitoba and Quebec led the advance in residential with both new construction and renovation projects on apartment buildings.