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Building construction investment edges down in May
July 18, 2022 By Don Horne
Investment in building construction edged down 0.2 per cent to $20.6 billion in May, as many of Ontario’s unionized construction workers were on strike during the month.
These strikes caused significant delays in numerous residential and non-residential construction projects throughout the province. Excluding Ontario, investment increased 1.1% at the national level.
At a sector level, non-residential investment fell 0.9% in May, while the residential sector edged up 0.1%.
On a constant dollar basis (2012=100), investment in building construction declined 0.2% to 13.0 billion in May.
Residential sector trend flattens out
In May, investment in the residential sector was largely unchanged at $15.4 billion, following robust growth that started in September 2021. Excluding Ontario, the residential sector continued its upward trend, increasing 1.3% in May.
Multi-unit construction continued to climb, increasing 3.4% to $7.0 billion, with six provinces posting gains, led by Quebec (+10.0%).
Investment in single family homes declined 2.5%, ending its seven-month growth streak. Overall, six provinces reported growth in May, which was offset by declines in four provinces, with Ontario and Quebec causing most of the fall.
Non-residential sector breaks growth streak
Investment in the non-residential sector contracted 0.9% to $5.2 billion in May, with the construction worker strike in Ontario offsetting the gains of eight provinces and driving all three components downwards.
Investment in the industrial component edged down 0.2% to $935 million, with the increase in Quebec (+2.0%) largely offset by the declines in Ontario (-1.2%).
The institutional component fell 0.8% to $1.4 billion, with seven provinces reporting declines.
Despite gains in eight provinces, the commercial component decreased 1.2% to $2.9 billion based on the strike in Ontario. This was the first decline in thirteen months.
For more information on housing, please visit the Housing statistics portal.
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