Canadian Nonresidential Construction Investment Down 2.7% in 4Q - Modern Distribution Management

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Canadian Nonresidential Construction Investment Down 2.7% in 4Q

Quarterly decline due to lower spending on commercial and industrial buildings.

Canadian investment in nonresidential construction totaled C$12.6 billion (US$8.7 billion) in the fourth quarter, down 1.7 percent from the previous quarter and down 2.7 percent from the same quarter in 2014.

The quarterly decline largely reflected a downward trend in spending on the construction of commercial buildings (down 2.5 percent) and, to a lesser extent, on the construction of industrial buildings (down 2.1 percent). Institutional investment edged up 0.1 percent, a seventh consecutive quarterly increase.

Nationally, investment in non-residential building construction was down in six provinces in the fourth quarter, with the largest declines in Quebec and Ontario.

In Quebec, investment was down in all three components, led by declines in the commercial and institutional components. In Ontario, the decrease resulted mainly from the commercial and institutional components.

Saskatchewan had the largest increase in the fourth quarter, mainly due to higher spending on the construction of institutional buildings.

Total investment fell in 18 of the 34 census metropolitan areas in the fourth quarter.

The sharpest declines occurred in Toronto and Montréal. The decrease in Toronto was due to lower spending on the construction of institutional and commercial buildings. In Montréal, the decrease was mainly a result of lower spending on institutional and commercial projects.

The largest increases occurred in Edmonton, Vancouver and Saskatoon. In Edmonton, higher investment in the construction of institutional buildings led the increase. In Vancouver, the gain originated from higher investment in the construction of commercial and industrial buildings, while in Saskatoon, spending increased in all three components.

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