Non-residential construction spending falls in Q1

Non-residential construction spending fell in the first quarter, pulled down 0.7% from the previous quarter by a drop in commercial and industrial construction investment, Statistics Canada reported Thursday.

Total investment in the sector for the quarter was $10.3-billion, which represents a 5.7% drop from the first quarter of 2009.

Investment in commercial and institutional construction began falling in early 2009, the federal agency said. But it noted that industrial construction spending has been increasing steadily since the first quarter of 2008.

The $5.6-billion invested in commercial projects in the first quarter was down 2.5% from the previous quarter and 14.8% year-over-year. The decrease was largely due to a drop in spending on office buildings, Statistics Canada said.

Industrial spending of $1-billion was down 4.4% from the previous quarter and 19.7% from the first quarter of 2009. Eight provinces saw a decline in this sector, though Saskatchewan posted growth due to higher investment in manufacturing plants and utilities buildings.

Institutional spending saw its ninth consecutive quarterly advance, rising 3.4% to $3.7-billion, thanks to investment in government buildings.

Statistics Canada surveys municipal building permits from 34 census metropolitan areas across the country to arrive at its figures.

Of those 34 areas, investment in was down in 19, with Calgary and Toronto showing the largest declines, largely due to a drop-off in institutional construction. That was also the problem in Quebec and Manitoba, which led the six provinces that posted a decrease. Edmonton, meanwhile, saw an increase in institutional projects, which raised non-residential construction in the city by 10.7% for the quarter.

(Source: National Post)


TABLE 1 -- Investment in non-residential construction by province or territory

(% change Q4-Q1 / 2009-2010)

Canada -0.7 -5.7
N.L. -3.7 -27.9
P.E.I. -33.6 -37.9
N.S. -1.1 -1.6
N.B. 2.9 16.4
Que. -4.9 -5.8
Ont. 0.3 -3.0
Man. -10.6 -2.6
Sask. -1.2 6.0
Alta. 0.1 -13.3
B.C. 2.9 -7.1
Yukon 17.6 356.6
N.W.T. -0.5 147.2
Nunavut 6.8 67.8

Source: Statistics Canada

TABLE 2 -- Investment in non-residential construction by metropolitan area

(% change Q4-Q1 / 2009-2010):
Total -1.1 -6.8

St. John's, N.L. 3.1 -30.1
Halifax -2.8 -1.5
Saint John, N.B. -8.1 38.6
Quebec City -13.8 -14.3
Montreal -2.7 -9.3
Ottawa-Gatineau 1.2 11.4
Toronto -2.1 -13.4
Hamilton -4.7 -0.3
London, Ont. -3.6 -33.0
Windsor, Ont. 10.8 46.2
Winnipeg -8.6 -5.8
Regina 2.4 30.9
Saskatoon -8.1 -14.2
Calgary -5.8 -15.8
Edmonton 10.7 5.4
Vancouver -0.9 -22.1
Victoria 7.0 43.8

Source: Statistics Canada