Canadian investment in building construction up 6.7 percent in January

Thursday, 21 March 2019 20:02:38 (GMT+3)   |   San Diego

According to Statistics Canada, total investment in building construction rebounded in January, up 6.7 percent from December to $14.8 billion. Gains in the residential sector (+9.0 percent to $10.4 billion) led investment for the month, as the non-residential sector continued to moderate the overall rate of investment in building construction (+1.5 percent to $4.4 billion).

The increase in total residential investment in January was broad based, with every province and territory increasing except Nunavut (-14.6 percent). Gains for the month were led by Ontario (+$277 million), Quebec (+$236 million) and Alberta (+$115 million).

In the residential sector, investment in single-dwelling construction broke from the downward trend set over the last three months of 2018, up 10.6 percent in January to $5.4 billion. At the same time, investment in multiple dwelling construction (which includes doubles, row homes, and condo and rental apartments) continued to build its upward momentum, rising 7.2 percent to $5.0 billion.

On an unadjusted basis, Canada's three largest municipalities posted strong year-over-year growth in total residential investment (Montréal +26.1 percent, Vancouver +18.1 percent, Toronto +8.6 percent) in January.

This growth was primarily concentrated in the multiple dwelling component, as builders focused investment in the construction of new condo and rental apartments (Toronto +$140 million, Vancouver +$139 million, Montréal +$79 million).

Gains in the non-residential sector in January were concentrated primarily in Quebec (+$36 million) and British Columbia (+$23 million). Investment in the remaining provinces and territories rose by $8 million to $2.8 billion.

By component, the gain in January was attributable to a 2.8 percent increase in investment in commercial buildings, reaching a record high $2.5 billion for the monthly series. The industrial component edged up 0.5 percent to $831 million, which was offset by a corresponding small decline in institutional investment (-0.7 percent to $1.0 billion).

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