Canadian investment in nonresidential building construction totaled C$12.9 billion (US$10.3 billion) in the third quarter, up 3.6 percent from the previous quarter. At the national level, spending increased in institutional, industrial and commercial.
Investment in the institutional component rose by 4.6 percent to C$3.6 billion (US$2.9 billion) in the third quarter, following two consecutive quarterly declines. The largest gains were reported in Ontario and Quebec, led by spending on educational buildings.
Investment in educational buildings, which includes schools, colleges and universities, rose by 18 percent in the third quarter to C$1.9 billion (US$1.5 billion). This was the third-highest investment in educational buildings since 1997, the year Statistics Canada began publishing data on investment in construction of non-residential buildings.
Spending on educational buildings accounted for 15 percent of total investment in nonresidential buildings in the third quarter, surpassing total investment in industrial buildings for the first time since the third quarter of 2011.
Spending on educational buildings increased in seven provinces, led by Ontario with C$145 million (US$115.6 million) and Quebec with C$91 million (US$72.6 million).
The Post-secondary Institutions Strategic Investment Fund, a measure announced in the 2016 Federal Budget, which tabled plans to invest up to C$2 billion (US$1.6 billion) in post-secondary institution infrastructure by April 30, 2018, may have contributed to the increase.
Spending on commercial buildings rose 2.6 percent to C$7.4 billion (US$5.9 billion) in the third quarter, with Ontario posting the largest gain with C$127.8 million (US$101.9 million), followed by Quebec with C$112.1 million (US$89.4 million). The increase in both provinces was mainly attributable to higher investment in office building construction.
Investment in industrial projects increased 6 percent to C$1.9 billion (US$1.5 billion) in the third quarter—the largest month-over-month increase since the third quarter of 2012. At the national level, the gain was the result of higher investment in the construction of farm buildings and, to a lesser extent, manufacturing plants.
