Investment in non-residential building construction decreased 1.3 percent to $11.1 billion in the third quarter, following six consecutive quarters of growth, according to Statistics Canada. This decline was largely driven by a continuing downward trend in investment in institutional building construction.
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Among the seven provinces that posted declines in the third quarter, Alberta and Ontario recorded the largest decreases. In Alberta, the largest part of the decline came from lower institutional investment, while in Ontario it was mostly a result of lower commercial investment. Both provinces recorded smaller declines in industrial construction.
The largest increases occurred in British Columbia and Newfoundland and Labrador, led by higher industrial investment in both provinces.
Investment was down in 17 of the 34 census metropolitan areas. The largest declines occurred in Edmonton, Kitchener and Barrie. All three components fell in Edmonton, led by institutional investment. Commercial investment was down in Kitchener, while institutional investment declined in Barrie.
The largest gains occurred in Montreal, Calgary and London. The increases in Montréal and Calgary were a result of higher commercial investment, while the advance in London came from institutional investment.
Institutional
Spending in the institutional component totaled $3.4 billion in the third quarter, down 3.5 percent from the second quarter and the sixth consecutive quarterly decline.
Institutional investment fell in seven provinces. The largest declines were in Alberta, where spending fell 20.0 percent to $398 million, and in Quebec where it was down 7.0 percent to $519 million. Both provinces saw lower spending in several institutional categories.
The largest increase was in Ontario, and resulted from higher investment in government buildings and health care facilities.
Commercial
Investment in commercial building construction edged up 0.4 percent to $6.5 billion, the seventh consecutive quarterly gain. However, the rate of growth of commercial investment has been slowing since the first quarter of this year. The main factor for the third quarter increase was higher spending on construction of office buildings and retail and wholesale outlets.
Commercial investment increased in four provinces in the third quarter. The largest increase occurred in Alberta, where investment rose 6.2 percent to $1.5 billion. This was the sixth consecutive quarterly gain. In Quebec, investment increased 3.8 percent to $1.1 billion.
Alberta's gains came mostly from office buildings, transportation facilities and warehouses. Advances in Quebec were mostly in research centers and retail and wholesale outlets.
Industrial
Investment in industrial projects was $1.2 billion in the third quarter, down 4.3 percent from the previous quarter. This was the first decline after five consecutive quarterly gains.
Provincially, Alberta and Ontario contributed the most to the decline in the industrial component. In both provinces, the decrease came mainly from lower investment in utility buildings.
British Columbia had the largest increase, as a result of higher spending on maintenance buildings.