Industrial Construction Gains Ground As Commercial Building Slows
Canada’s construction market delivered a split picture in the second quarter, with industrial building gaining ground as commercial investment declined.
Investment in industrial construction rose 4.9 per cent after adjusting for inflation, Statistics Canada reported Wednesday. The gain was nearly enough to offset weaker spending on commercial and institutional projects, leaving overall non-residential investment slightly lower at $19.3 billion.
Commercial construction recorded the sharpest decline, falling 1.7 per cent during the quarter. Institutional investment was down 0.8 per cent.
The broader building market still grew, largely because of residential activity. Total investment increased 1.1 per cent after adjusting for inflation, reaching $63.3 billion. Residential construction investment accounted for a $741.4-million increase.
Momentum softened as the quarter came to a close. Total building investment slipped 0.5 per cent in June, although it remained 5.7 per cent higher than a year earlier.
Commercial investment continued to weaken during the month, falling 0.7 per cent. Alberta and Ontario were the biggest contributors to the decline, but decreases were recorded across most of the country.
Industrial construction moved in the opposite direction, posting a 0.4 per cent increase in June. Growth in British Columbia led the monthly gain, partly offset by lower investment in Quebec.
Statistics Canada noted that building permits rose sharply in June, but said there is typically a delay before approved projects translate into construction spending at active job sites.
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Jared Ennis
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Josh A
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Bob Tuteur
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