CONSTRUCTION STATS A selection of data reflecting trends in the Canadian construction industry

2023 Building Construction Investment Off To Solid Start

Investment in building construction increased 1.5 per cent in January, landing at $20.4 billion, reports Statistics Canada. All components posted gains for the month. The residential sector was up 1.9 per cent, reaching $14.9 billion, while the non-residential sector was up a half-per-cent, hitting $5.6 billion. The jump in residential building construction was a welcomed rebound following the four consecutive monthly declines recorded to end 2022.

The non-residential construction generated small monthly gains but continued to climb in January. Industrial construction investment rose 1.1 per cent on the month, reaching $1.1 billion, a gain of 25 per cent over January of 2022, and the 14th consecutive monthly increase.

Commercial construction edged up 0.1 per cent to sit at $3.1 billion. And institutional construction investment was up 0.7 per cent as it reached $1.4 billion.

Permits Take Polar Dip

20,054,000

5.0%

1,609,400

Construction Employment Flat For February

The number of people working in construction was little changed in February, following two consecutive monthly gains. The sector actually lost 1,500 positions for the month, reports Statistics Canada, after gaining 27,000 in December and 16,000 in January.

Overall, Canadian employment held steady in February, gaining roughly 22,000 positions and maintaining an unemployment rate of five per cent, just shy of the record-low 4.9 per cent observed in June and July of 2022.

Employment has trended upward since September of 2022. In February, there were almost 350,000 more employed persons in Canada than in August of 2022.

The monthly total value of building permits in Canada decreased four per cent in January, coming in at $9.8 billion, reports Statistics Canada. Eight provinces had contractions in January, with the multi-residential sector in British Columbia contributing significantly to the national fall. Overall, the residential sector declined 6.6 per cent, reporting in at $6.1 billion for the month. Conversely, the non-residential sector was relatively stable thanks to a 5.4 per cent rise in commercial permits. Cumulatively, the industrial, commercial and institutional segments managed a modest increase of 0.7 per cent to $3.7 billion, although the commercial gains masked red ink in the other two components.

The downward trend in multi-family home permits continued as construction intentions declined 8.3 per cent for that segment in January.

Gains in the non-residential sector were on the strength of the commercial component, which rose 5.4 per cent. Ontario was leading the charge with a rise of almost 23 per cent. This was the second consecutive monthly increase.

Permits in the industrial component were off almost four per cent in January, and intentions in the institutional sector decreased almost six per cent.

RESIDENTIAL -6.6% Multi-Family -8.3%

INDUSTRIAL -3.9% INSTITUTIONAL -5.9%

COMMERCIAL +5.4%