2005 investment forecast for Canada

2005 investment forecast for Canada

Business investments in Canada are expected to increase by 8.4% in 2005 to C$188.3 billion, excluding the housing sector, suggest forecasts from Statistics Canada. Manufacturing investments are expected to increase 14.9% to C$22.1 billion, largely driven by investment in refineries (up 36.6%), wood products (up 60.8%) and chemical manufacturing (up 23.7%). The mining, oil and gas extraction sector is expected to increase 12.2% to C$37.7 billion. At 35%, Ontario will receive the largest share of total intended investment. Alberta comes in second with 20% due to growth in the oil and gas industry. Quebec is a close third at 19%. Investment in Quebec is projected to edge up 2.2% to C$50.2 billion. Alberta should reach C$52.3 billion (+7.8%), and Ontario is expected to hit C$90.7 billion (+5.9%). Non-residential construction is expected to increase 10.2% to C$88.5 billion in 2005, while spending on machinery and equipment is expected to rise 6.9% to C$99.8 billion. Preliminary figures for 2004 indicate that total investment in 2004 reached C$243.9 billion, an 8.5% increase from the previous year. The 2004 numbers were also 3.1% stronger than forecasts made at the beginning of the year. C$ = US$0.80176