Skip to main content

August 12, 2022 – Investment in building construction edged up 0.3% to $20.8 billion in June, reports Statscan. Gains in the non-residential sector (+2.4%) helped keep overall investment up.

Most of the strength for the month came from Ontario, reporting gains across all components of construction after a weak May (resulting from a strike by construction workers in the province).

Open in new tab/window to view full size

Non-residential construction investment rose 2.4% to $5.3 billion in June.

Business investment rose 2.7% to $3.0 billion, led by Ontario (+4.1%). After falling for the first time in 13 months in May (again, the strike), the trade component offset the temporary decline and continued its upward trend.

Institution building investment rose 0.7% to $1.4 billion, as six provinces reported gains, led by Ontario (+3.8%).

Investment in the industrial component rose 3.7% to $974 million, the largest monthly value increase since May 2020, just after the pandemic-related shutdowns.

Open in new tab/window to view full size

Although six provinces recorded growth, residential construction investment fell 0.4% to $15.5 billion in June, with Quebec (-6.7%) responsible for most of the decline. This is the first decline in nine months for residential investment.

Multi-unit construction investment fell 1.6% to $6.9 billion in June. Despite this decline, investment in multi-unit construction has been on an overall upward trend since October 2021.

Investment in single family homes continued to show strength, having outpaced multi-unit construction since the pandemic slowed. It rose 0.7% to $8.6 billion in June, with gains in six provinces.

Open in new tab/window to view full size

In review – Q2 2022

The total value of investment in building construction rose 3.3% to $62.3 billion in the second quarter, the third consecutive quarterly increase. Investment for Residential buildings reached $46.4 billion, mainly due to increased spending in the construction of multiple dwellings. The non-residential the sector grew 2.6% to $15.8 billion.

Ontario’s growth in the second quarter remained stable compared to the first quarter of the year, as the strike impacted investment in all components. industrial building was the only component to show notable growth for this province.

Investment in the non-residential rose 2.6% to $15.8 billion, continuing growth from the previous quarter. The commercial The component, which contributed the most to the non-residential sector, rose 2.8% to $8.8 billion, its fifth consecutive quarterly increase.

Institutional construction edged up 0.5% to $4.2 billion, up for the sixth consecutive quarter. The industrial rose 5.4% to $2.9 billion, with Ontario (+8.3%) leading the gain.

Residential investment in the unitary rose for the third consecutive quarter, rising 2.6% for the quarter to $25.7 billion. The multi-unit component grew over the previous three quarters, rising 4.5% this quarter, with most of the growth coming from Quebec.