May
6
2009
First quarter 2009 Investment in non-residential building construction reached $10.8 billion (in current dollars) in the first quarter of 2009, down 1.8% from the fourth quarter of 2008. This marks the first decline since the fourth quarter of 2004.
Investment in the commercial and industrial components fell. Investors injected $6.6 billion in commercial projects, down 3.0% from the fourth quarter of 2008. For the industrial component, investment fell 4.7% to $1.2 billion.
In contrast, spending in the institutional component continued to rise, up 2.5% to $3.0 billion.
Overall, five provinces and two territories posted declines in the first quarter. Ontario, Quebec and Alberta reported the sharpest drops, mainly the result of lower spending on commercial construction.
Saskatchewan posted the strongest increase as a result of higher spending in all components.
Investment fell in 17 of the 34 census metropolitan areas. The largest drops were in Calgary, Montréal and Toronto, mainly because of the decline in commercial construction projects.
However, Edmonton posted $643 million in investments, a 4.3% increase as a result of advances in the institutional and commercial components.
Decrease in the commercial component
Investment in the construction of commercial buildings (-3.0%) fell for the first time since the first quarter of 2005. The drop was a result of spending on the construction of office buildings and commercial centres in Alberta, Ontario, Quebec and British Columbia.
All of the other provinces posted increases in the commercial component.
Decline in the industrial component
Investment in the construction of industrial buildings fell because of the drop in investments in the construction of primary industry buildings in every province, and in the construction of maintenance buildings in seven provinces.
At the provincial level, Ontario posted the sharpest decline (in dollars), with decreased investment in every category of industrial building.
In contrast, Saskatchewan and Alberta posted increases in industrial construction, including manufacturing plants and utilities buildings.
Growth in the institutional component
The construction of health care buildings drove the institutional component upwards for a fifth straight quarter.
Higher investments were posted in seven provinces in the first quarter. Ontario and Alberta posted the most significant dollar increases due to the construction of health care buildings.
In contrast, Quebec posted the sharpest decline (in dollars), which was attributed to the construction of teaching facilities. This report was reviewed by Sandy Hutchens.