Investment in non-residential building construction

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Investment in non-residential building construction amounted to $10.6 billion (in current dollars) in the second quarter of 2009, a 2.8% drop from the first quarter and the second consective quarterly decrease. This was the result of declines in commercial and industrial building construction.

Investors spent $6.3 billion on commercial projects, down 4.1%, while in the industrial component, investment fell 7.9% to $1.2 billion. Spending in the institutional component continued to rise, up 2.1% to $3.1 billion.

Provincially, the largest contributions to the quarterly decrease (in dollars) occurred in Alberta (-7.4% to $2.5 billion) and British Columbia (-5.2% to $1.3 billion). In both provinces, the decline was mainly due to lower spending on commercial projects.

Saskatchewan posted the largest increase, as a result of higher spending in all three components.

Investment fell in 19 of the 34 census metropolitan areas. The largest drops were posted in Calgary, Vancouver and Montréal, and were mainly due to declines in commercial construction projects.

In Barrie, investments rose 21.2% to $132 million, the result of advances in the institutional component.

Decline in the commercial component

Investment in the construction of commercial buildings declined for the second consecutive quarter, mainly as a result of lower spending on the construction of office buildings and retail and wholesale outlets in Alberta and British Columbia.

Overall, six provinces and two territories recorded decreases in commercial investment. The most significant drops (in dollars) occurred in Alberta (-9.8% to $1.6 billion), British Columbia (-7.0% to $863 million) and Quebec (-4.4% to $985 million).

Ontario and Saskatchewan posted the largest increases, the result of higher spending on the construction of office buildings.

Decrease in the industrial component

Spending in the industrial component declined for a fourth consecutive quarter, as a result of decreases in all industrial building categories.

Provincially, the largest contributions to the quarterly decline (in dollars) occurred in Alberta, where investment fell 15.8% to $265 million, and in Ontario, where it was down by 7.6% to $392 million.

Only Prince Edward Island, British Colombia and Saskatchewan posted advances in the second quarter, mainly due to higher spending on the construction of manufacturing plants.

Growth in the institutional component

Spending in the institutional component advanced for a sixth consecutive quarter, principally as a result of higher investment in health care and educational buildings.

Second-quarter increases were recorded in six provinces and the Northwest Territories. Quebec recorded the largest gain in dollars, followed by Alberta, as a result of significant spending on health care and educational buildings.

After seven consecutive quarters of increases, Ontario posted the largest reduction in dollars. This was the result of lower spending in several institutional building categories.

Available on CANSIM: table 026-0016.

Definitions, data sources and methods: survey number 5014.

More detailed data on investment in non-residential building construction are also available in free tables from the Summary tables module of our website.

For more information, or to enquire about the concepts, methods or data quality of this release, contact Michel Labonté (613-951-9690; bdp_information@statcan.gc.ca), Investment and Capital Stock Division.