- Investment in building construction in Canada increased by 1.5% to $20.4 billion in January 2023.
- The residential sector saw a rise of 1.9% to $14.9 billion, with single-family home investment up by 2.4% and multi-unit construction up by 1.3%.
- Investment in non-residential construction increased by 0.5% to $5.6 billion, with industrial construction investment rising by 1.1% and commercial construction investment edging up by 0.1%.
Introduction:
The Canadian economy witnessed a 1.5% increase in investment in building construction in January 2023, bringing the total investment to $20.4 billion. The increase was observed in all components of building construction, with the residential sector showing significant gains. On the other hand, the non-residential sector experienced minor gains. This article highlights the details of the January 2023 investment in building construction in Canada.
Total Investment in Building Construction:
The total investment in building construction increased by 1.5% to $20.4 billion in January 2023. This growth was observed in all components of building construction, including the residential and non-residential sectors. On a constant dollar basis (2012=100), investment in building construction rose by 2.4% to $11.9 billion.
Residential Sector:
Investment in residential building construction advanced by 1.9% to $14.9 billion in January 2023, following four consecutive monthly declines at the end of 2022. Single-family home investment rose by 2.4% to $8.0 billion, with Ontario accounting for much of the gain due to its largest increase since December 2021. Multi-unit construction increased by 1.3% to $6.8 billion, driven mainly by Ontario’s 5.2% increase. Quebec, on the other hand, continued to contract, posting its eighth consecutive decline since reaching its peak in May 2022.
Non-Residential Sector:
Investment in non-residential construction climbed by 0.5% to $5.6 billion in January 2023. Industrial construction investment rose by 1.1% to $1.1 billion, marking the 14th consecutive monthly increase in this component, and was up 25.0% year over year. Commercial construction investment edged up by 0.1% to $3.1 billion. Manitoba continued to climb for the fifth consecutive month, approaching pre-COVID-19 pandemic levels of investment in this component. Institutional construction investment was up by 0.7% to $1.4 billion, with eight provinces reporting gains. New Brunswick posted its eighth consecutive monthly increase, while Newfoundland and Labrador posted its 15th consecutive monthly drop.
Note: All data is in Canadian dollars.
Conclusion:
The Canadian economy experienced a 1.5% increase in investment in building construction in January 2023, with the residential sector showing significant gains. Ontario was the major contributor to the residential sector’s growth. On the other hand, the non-residential sector experienced minor gains. The industrial construction component continued its growth trend, while Manitoba showed positive signs of recovery in commercial construction. Overall, eight provinces reported gains in institutional construction, while Newfoundland and Labrador continued to experience a decline.
Source: https://www.statcan.gc.ca/
