Fourth quarter Canadian investment in nonresidential building construction increased 0.3 percent from the previous quarter to C$12.9 billion (US$10.7 billion). It was the third consecutive quarterly increase and resulted from higher spending in the institutional and industrial components.
At the national level investment rose in five provinces in the fourth quarter, with the largest gain occurring in Alberta, followed closely by Manitoba. In Alberta, the increase was spread across the institutional and industrial components, while in Manitoba, the gain was in the commercial and institutional components.
Quebec recorded the most significant decrease as a result of lower investment in the commercial and industrial components.
Metropolitan Areas
Non-residential investment rose in 14 of 34 census metropolitan areas. The largest increases were in Edmonton, Toronto and Winnipeg. In Edmonton and Toronto, investment increased in all three components, while the gain in Winnipeg was attributable to commercial and institutional spending.
Conversely, the largest decreases occurred in Saskatoon and Ottawa. In Saskatoon, investment declined for a third consecutive quarter, as spending fell across all three components. In Ottawa, the decline was mostly attributable to lower investment in the commercial components.
Industrial Component
Investment in industrial projects increased 1.1 percent in the fourth quarter to C$1.6 billion (US$1.3 billion), the second consecutive quarterly increase.
Gains in this component were mainly the result of the construction of manufacturing plants and primary industry buildings in Ontario as well as maintenance buildings in Alberta.
Quebec posted the largest decline in the fourth quarter, with investment falling 8 percent to $270 million (US$225.2 million), mainly because of lower construction of manufacturing plants.
Institutional Component
Investment in institutional projects increased in five provinces, rising 1.4 percent nationally to C$3.5 billion (US$2.9 billion) in the fourth quarter.
The biggest increase was in British Columbia, followed by Alberta. In British Columbia, investment was up 7.4 percent to C$384 million (US$320.3 million). This was mainly the result of higher spending in the construction of health care facilities. In Alberta, investment rose 6.1 percent to C$441 million (US$367.9 million), the second consecutive quarter of growth for the province. This increase was mainly a result of higher spending in all categories of institutional buildings.
Conversely, the largest decrease occurred in New Brunswick, where investment was down 18.9 percent to C$74 million (US$61.7 million). This was the third straight quarterly decline and reflected the near completion of major institutional projects in the province.
Commercial Component
Investment in commercial building construction decreased 0.4 percent from the third quarter to C$7.8 billion (US$6.5 billion) in the fourth quarter. This decline followed two consecutive quarterly increases and was attributable to lower spending on commercial building construction in seven provinces.
The sharpest declines occurred in Quebec and Ontario. In Quebec, commercial investment was down 2.3 percent to C$1.3 billion (US$1 billion), the fourth straight quarterly drop in commercial investment in this province. The decrease was primarily due to lower investment in the construction of recreational, office and retail and wholesale buildings. In Ontario, investment was down 0.8 percent to C$3 billion (US$2.5 billion), mainly as a result of lower spending on recreational, retail and wholesale and transportation facilities.
The largest increase was in Manitoba, where investment rose 11.9 percent to C$268 million (US$223.5 million). Investment was up for most types of commercial buildings.
