Investment in non-residential building construction

Investment in non-residential building construction totalled $10.3 billion in the first quarter, down 0.7% from the previous quarter and 5.7% below the first quarter of 2009.

Lower investments in commercial and industrial building construction explained both the first quarter decline and the downward trend that began in early 2009.

On the other hand, the institutional component has continued to increase, pursuing an upward trend that began in the first quarter of 2008.

Of the six provinces that posted declines in the first quarter, Quebec had the largest decrease followed closely by Manitoba, mainly as a result of lower spending on institutional building construction.

In contrast, British Columbia, Ontario, New Brunswick and Alberta recorded gains in the first quarter, primarily as a result of higher spending in the institutional component.

Investment was down in 19 of the 34 census metropolitan areas. The largest declines were in Calgary and Toronto, mostly because of decreases in commercial construction projects.

Edmonton posted the largest increase in the first quarter, as investment increased 10.7% to $688 million. The increase was due to an advance in institutional projects.

Continuing decline in the commercial component

Investors put $5.6 billion into commercial projects in the first quarter, down 2.5% from the previous quarter and 14.8% below the first quarter of 2009.

Investment in commercial building construction continued the decline that started in the first quarter of 2009. The first-quarter decline was the result of lower spending on office building construction in nine provinces, especially Alberta and Quebec.

Overall, commercial investment was down in seven provinces. The sharpest decreases were in Alberta (-8.9% to $1.2 billion) and Quebec (-1.9% to $974 million). Investment in commercial projects in those two provinces has fallen for five consecutive quarters.

In contrast, Ontario saw higher spending on recreational and office building construction. In Nova Scotia, higher spending was spread among several commercial construction categories.

Decrease in the industrial component

Investment in industrial projects totalled $1.0 billion in the first quarter, down 4.4% from the previous quarter and 19.7% below the first quarter of 2009. This extends the downward trend in the industrial component to seven quarters.

The first-quarter decrease is attributable to lower investment in the construction of primary industry buildings in seven provinces and in the construction of maintenance buildings in five provinces.

Overall, eight provinces posted lower investment in industrial building construction. The largest decreases were in British Columbia and Ontario, followed closely by Alberta and Manitoba.

In contrast, Saskatchewan experienced higher investment in manufacturing plants and utilities buildings.

Continued growth in the institutional component

Spending on institutional projects continued to rise, up 3.4% to $3.7 billion in the first quarter compared with the previous quarter and a ninth consecutive quarterly advance.

The first-quarter gain is largely due to higher investment in the construction of government buildings in seven provinces and educational buildings in five provinces.

In the first quarter, five provinces and all the territories posted increases. Alberta posted the largest gain, due to higher spending on construction of government and educational buildings. British Columbia followed with increased investment in educational buildings and health care facilities.

In contrast, Quebec had the largest decline, mainly due to lower spending in the construction of educational 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 under Summary tables.

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