In February 2024, Canada’s investment in building construction saw a slight decline, decreasing by 1.1% to $19.3 billion compared to the previous month. This dip follows a flat movement in January, signaling potential shifts in the construction sector.
The residential sector, a significant contributor to the construction industry, experienced a decline of 1.2%, amounting to $13.4 billion. This decrease is particularly noteworthy as it marks the second consecutive monthly decline. Ontario led this downturn with a decrease of $153 million, totaling $5.2 billion. However, six provinces, notably Newfoundland and Labrador, saw an increase in residential investment.
Despite the overall decline in the residential sector, investment in detached single-family homes showed resilience, growing by 1.3% to $6.7 billion. This growth was widespread, with all provinces and territories, excluding Yukon, reporting gains. On the other hand, multi-unit investments faced a decline of 3.5%, amounting to $6.7 billion, with Ontario and Quebec being the primary contributors to this downturn.
The non-residential sector also witnessed a decrease, falling by 0.9% to $6.0 billion in February. This decline was driven by a drop in commercial investment, which has now seen eight consecutive monthly declines. The commercial sector shrunk by $77 million, reaching $3.0 billion. Industrial investment also saw a slight decrease of $4 million, totaling $1.3 billion.
Despite these declines, the institutional component of the non-residential sector showed promise, increasing by $29 million to $1.7 billion. However, this growth was not sufficient to offset the declines in other components.
Ontario’s influence was palpable across both residential and non-residential sectors. The province’s multi-unit investments declined by 6.0%, while its commercial investments saw a 4.9% drop. Conversely, Newfoundland and Labrador’s residential investments increased by $16 million, showcasing regional variances in construction investment trends.
When adjusted for inflation using the 2017 constant dollar basis, the total investment in building construction decreased by 1.2% to $11.9 billion in February. This adjustment provides a clearer picture of the real value of investments, highlighting the challenges faced by the construction industry amidst inflationary pressures.