Friday, June 21, 2024
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Construction Industry Continues Astounding 4th Straight Month of Decline

Construction, whether it be commercial or residential or both, is usually correlated with strong economic growth and GDP numbers and the corresponding increase in Foreign Direct Investment(FDI), you would be right to assume that there would be an abundance of property and residential home construction taking place. That doesn’t seem to be the case. Investment in residential construction declined for the fourth straight month, falling 4.5% to $12.1 billion in June. Investment in non-residential construction edged down 0.2% to $5.9 billion. Overall, investment in building construction fell 3.1% to $18.0 billion in June.

Construction Industry Continues Astounding 4th Straight Month of Decline

After adjusting for inflation (2012=100), investment in building construction decreased by 3.4% to $10.3 billion.

Chart 1  Chart 1: Investment in building construction, seasonally adjusted
Investment in building construction, seasonally adjusted

The residential sector continues to fall

Residential construction declined for the fourth consecutive month, falling 4.5% to $12.1 billion in June. Ontario (-5.8% to $5.1 billion) accounted for most of the drop.

Single-family home construction fell 5.7% to $6.2 billion in June, with declines seen in eight provinces.

Multi-unit construction declined for the eighth straight month, falling 3.1% to $5.9 billion in June, the lowest level since September 2021.

Construction Industry Continues Astounding 4th Straight Month of Decline

Infographic 1  Thumbnail for Infographic 1: Investment in residential building construction, June 2023
Investment in residential building construction, June 2023

Chart 2  Chart 2: Investment in residential building construction, seasonally adjusted
Investment in residential building construction, seasonally adjusted

Investment in the non-residential sector edges down

Investment in non-residential construction edged down 0.2% to $5.9 billion in June due to widespread declines in Quebec (-3.1% to $1.3 billion).

Commercial construction was up 0.8% to $3.3 billion in June, while industrial (-1.4% to $1.2 billion) and institutional (-1.4% to $1.4 billion) construction both declined.

Construction Industry Continues Astounding 4th Straight Month of Decline

Infographic 2  Thumbnail for Infographic 2: Investment in non-residential building construction, June 2023
Investment in non-residential building construction, June 2023