Investment in non-residential building construction

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Investment in non-residential construction totalled $10.2 billion in current dollars in the fourth quarter, down 2.5% from the third quarter and down 7.2% from the fourth quarter of 2008. This decrease was largely driven by a continuing downward trend of spending on commercial building construction and to a lesser extent by a similar declining trend in industrial building construction.

Investors spent $5.7 billion on commercial projects, down 5.0% from the third quarter and 15.8% below the fourth quarter of 2008. Investment in industrial projects fell 6.8% from the previous quarter to $1.0 billion in the fourth quarter and was 23.2% below the fourth quarter of 2008. This is consistent with the decline in the value of building permits recorded during the economic downturn.

In contrast, spending in institutional projects continued to increase, rising 3.3% from the third quarter to $3.5 billion in the fourth quarter, and up 20.2% from the fourth quarter of 2008.

Overall, seven provinces posted decreases in the fourth quarter. Alberta and Ontario reported the largest declines, mainly due to lower spending on commercial construction.

Manitoba, Nova Scotia, New Brunswick and the three territories posted gains in the fourth quarter, which were largely attributable to higher spending on institutional building construction.

Investment fell in 20 of the 34 census metropolitan areas. The largest declines occurred in Toronto, Calgary and Vancouver, mainly because of a decrease in commercial construction projects.

Kelowna and Windsor posted the largest quarterly increase, mainly as a result of higher spending in the institutional component.

Decline in the commercial component

Investment in the construction of commercial buildings declined for the fourth consecutive quarter. The main factor was lower spending on the construction of office buildings, and retail and wholesale outlets in Alberta, Ontario and British Columbia.

Overall, eight provinces recorded decreases in commercial investment. The most significant declines occurred in Alberta (-10.8% to $1.3 billion), Ontario (-3.8% to $2.1 billion) and British Columbia (-6.1% to $739 million).

In contrast, Manitoba, Nova Scotia, Yukon and Nunavut showed higher spending in several commercial building categories.

Decrease in the industrial component

Investment in the construction of industrial buildings declined as a result of lower spending in the construction of manufacturing plants in seven provinces, and in the construction of utilities and maintenance buildings in five provinces.

Provincially, the largest contributions to the quarterly decrease occurred in Alberta, where investment fell 18.7% to $174 million, and in British Columbia, where it was down 16.9% to $71 million.

In contrast, Yukon and Nunavut posted increases resulting largely from higher spending in mining and maintenance buildings.

Growth in the institutional component

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

Increases in the fourth quarter were recorded in six provinces and the three territories. Alberta recorded the largest gain, due to higher investment in all institutional building categories. Alberta was followed by British Columbia, where there was significant spending on health care buildings.

After two consecutive quarters of increases, Quebec posted the largest decline in the institutional component. This was mainly the result of lower spending on educational and health care buildings.

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 online. From the Key resource module of our website, choose Summary tables.

For more information, or to enquire about the concepts, methods or data quality of this release, contact Bechir Oueriemmi (613-951-1165; bdp_information@statcan.gc.ca), Investment and Capital Stock Division.