According to Statistics Canada, in May 2023, Canada experienced a decline in investment in building construction, decreasing by 1.2% to $19.9 billion. This decrease was primarily driven by a 1.7% drop in the residential sector, which amounted to $14.0 billion, while the non-residential sector remained stable at $5.9 billion.

The decline in residential investment had significant regional implications, as Alberta reached its lowest level since December 2020, marking the ninth consecutive monthly decrease for the province. Nationally, single-family home investment decreased by 2.9% to $7.4 billion in May 2023, with a total of seven provinces experiencing declines.

Within the residential sector, multi-unit construction was almost unchanged, decreasing by only 0.3% to $6.7 billion. However, Quebec was a major contributor to this fall, experiencing a 5.0% decline (equivalent to -$60.1 million) since its peak in May 2022.

On the non-residential side, investment in building construction remained largely unchanged at $5.9 billion in May. However, this marked an interruption to 20 consecutive months of growth in the industrial construction sector in Quebec, where investment dropped by 3.2% (equivalent to -$11.9 million).

Commercial construction investment also slightly declined by 0.2% to $3.2 billion at the national level in May. In contrast, the institutional component experienced an increase of 0.6% to $1.4 billion, with Ontario leading the gains with a notable 2.9% increase (equivalent to +$15.4 million).

Overall, the decline in investment in building construction for May 2023 highlights the challenges faced by the construction industry, particularly in the residential sector, with Alberta and Quebec experiencing significant declines. The interruption of growth in certain non-residential sectors, such as industrial construction in Quebec, also contributed to the decline. However, it is important to consider that data presented in the release are subject to revisions, and further analysis may be needed to understand the longer-term trends.