According to Statistics Canada, investment in non-residential building construction reached $12.6 billion in the fourth quarter, down 1.7 percent from the previous quarter. The decline largely reflected a downward trend in spending on the construction of commercial buildings and, to a lesser extent, on the construction of industrial buildings.
The non-residential sector continued to be affected by a number of factors, namely high vacancy rates for office buildings in major urban centers and lower profits for companies in the primary resource sector, specifically the oil and gas industry.
Investment in the construction of commercial buildings decreased 2.5 percent to $7.4 billion in the fourth quarter, marking a fourth consecutive quarterly decrease. Seven provinces posted a decline, mainly due to lower investment for most types of commercial buildings.
Investment in industrial projects declined 2.1 percent nationally to $1.5 billion, largely as a result of lower spending on the construction of primary sector and utilities buildings. Four provinces recorded lower investment in industrial projects in the fourth quarter.
Investment in the construction of institutional buildings edged up 0.1 percent to $3.7 billion, a seventh consecutive quarterly increase. Six provinces posted increases, led by Alberta.