Statistics Canada reports that a there was a notable surge in Canadian building construction investment in September, which rose by 5.3% to $18.9 billion compared to the previous month. The residential sector showed significant growth, climbing by 7.3% to $12.9 billion, driven primarily by increased investments in single-family homes and multi-unit constructions.

The growth in residential investment was propelled by multiple provinces, notably Ontario, Quebec, Alberta, and Manitoba, showcasing increases ranging from 6.7% to 33.6%. Single-family home investment, after consecutive monthly declines, soared by 6.4% to $6.3 billion, marking Manitoba’s largest-ever recorded monthly increase.

Multi-unit construction escalated by 8.2% to $6.6 billion across all provinces, with Ontario and Alberta making substantial contributions to this surge.

Non-residential construction investment observed a modest 1.2% increase to $6.0 billion, largely influenced by Ontario, which accounted for a substantial 72.8% of the sector’s gains. Notable increments were seen in industrial construction, institutional construction, and a slight decline in commercial construction.

Despite this monthly surge, the overall investment in building construction across Canada witnessed a quarterly decrease of 2.8% to $54.7 billion in the third quarter. The residential sector declined by 4.4% to $36.7 billion, while the non-residential sector rose by 0.5% to $17.9 billion. This decline in the residential sector was largely attributed to drops in single-family home investment, offset partially by an uptick in multi-unit construction, notably in Alberta.

The non-residential sector experienced its 11th consecutive quarterly increase, particularly in institutional construction, with notable improvements in industrial construction and a slight decrease in commercial investment.

The overall trends indicate a mixed scenario, with substantial monthly growth in September but a decline in the quarterly investment, reflecting some challenges in the construction sector during the quarter.

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