Investment in Canadian building construction down 1.9 percent in May

Monday, 12 July 2021 21:43:08 (GMT+3)   |   San Diego

According to Statistics Canada, investment in building construction cooled slightly in May, decreasing 1.9 percent to $19.4 billion. This was the first drop in seven months. Residential construction investment (-2.7 percent) was down for the first time since April 2020, while non-residential construction increased slightly.

Residential construction was down 2.7 percent in May, bringing total investment to $14.8 billion with declines in both single and multi-unit construction.

Investment in single-family homes was down 2.7 percent to $8.3 billion. Quebec and Ontario posted the largest declines. Despite the decrease this month, single-unit investment remained approximately 60.0 percent above pre-COVID-19 levels.

With half of the provinces decreasing, multi-unit construction investment fell 2.6 percent to $6.5 billion in May. Quebec reported the largest decline (-11.0 percent), reversing a 13.0 percent increase in April.

Investment in commercial construction increased 0.8 percent to $2.6 billion. Ontario continued to lead this component with multiple high-value construction projects in the works across the province such as Amazon fulfillment centers, the Laborers Union office building in Vaughan and a Canadian Tire distribution center in Brampton.

Institutional investment continued to grow for the seventh consecutive month, up 1.2 percent to $1.2 billion. Quebec led the way, advancing 3.7 percent to $341 million. Ontario, Alberta and Prince Edward Island were the other provinces to report notable gains.

Seven provinces saw declines in industrial construction, which decreased 0.7 percent to $837 million nationally in May.

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