Investment in Building Construction Decreases in May
July 14, 2022 | By Logan Caswell
Excluding Ontario, investment increased 1.1% at the national level.
Statistics Canada has reported that month-over-month investment in building construction down 0.2% in May 2022, totalling $20.6 billion. Many of Ontario’s unionized construction workers were on strike during the month, so excluding Ontario, investment in the category actually saw an increase of 1.1% at the national level.
Residential sector trend flattens out
In May, investment in the residential sector was largely unchanged from the previous month at $15.4 billion, following a large growth that started in September 2021. Excluding Ontario, the residential sector continued its upward trend, increasing 1.3% in May.
Multi-unit construction continued to climb, increasing 3.4% to $7 billion, with six provinces posting gains, led by Quebec +10%.
Investment in single family homes declined 2.5%, ending its seven-month growth streak. Overall, six provinces reported growth in May, which was offset by declines in four provinces, with Ontario and Quebec causing most of the fall.
Non-residential sector breaks growth streak
Investment in the non-residential sector contracted 0.9% to $5.2 billion in May, with the construction worker strike in Ontario offsetting the gains of eight provinces and driving all three components (institutional, commercial & industrial) downwards.
Investment in the industrial component edged down 0.2% to $935 million, with the increase in Quebec +2% largely offset by the declines in Ontario -1.2%.
The institutional component fell 0.8% to $1.4 billion, with seven provinces reporting declines.
Despite gains in eight provinces, the commercial component decreased 1.2% to $2.9 billion based on the strike in Ontario. This was the first decline in 13 months.