Investment in Building Construction, May 2020

EIN Residential con 400

July 24, 2020

Total investment in building construction:

$13.4 billion – May 2020

60.1% Monthly Change

Total investment in building construction increased 60.1% to $13.4 billion in May, partially rebounding from large declines in April. The easing of COVID-19 construction restrictions in May, most notably in Ontario and Quebec, led to growth in all components of residential and non-residential investment. Despite rebounding strongly in May, investment levels remained 16.5% below the level observed in February 2020. On a constant dollar basis (2012=100), investment in building construction increased 60.3% to $11.0 billion.

Although all provinces started to reopen their economies—including the construction sectors—in May, Ontario, Quebec and Prince Edward Island made the most impactful policy changes during the month. In Ontario, some non-residential construction projects were reopened starting May 4. Additionally, the province moved into Stage 1 of reopening on May 19, which included a full resumption of all construction projects. In Quebec, all sectors of the construction industry were authorized to resume activity on May 11 under strict guidelines of the Commission des normes, de l’équité, de la santé et de la sécurité du travail. Lastly, in Prince Edward Island, new construction projects were permitted to start on May 1, following a five-week work stoppage.

For more information on housing, please visit the Housing statistics portal.

Residential construction rebounds in May

Investment in residential construction rose 57.0% to $8.4 billion in May. Investment in single-unit construction bounced back 71.7% to $4.1 billion, exceeding multi-unit growth which increased 45.2% to $4.3 billion. Although Ontario and Quebec reported the largest provincial gains for the month, all provinces bounced back somewhat from sharp declines in April. Despite these strong gains, residential investment remained 22.7% lower than February, before COVID-19-related restrictions were put in place.

Non-residential construction on track to return to pre-COVID levels

Non-residential construction investment increased 65.6% to $4.9 billion in May. All three components of non-residential investment increased, with gains in Ontario and Quebec more than offsetting declines in five other provinces.

The commercial component represented the majority of non-residential construction gains, up 99.0% to $2.9 billion. Nearly all of the increase was in Ontario and Quebec, with both provinces returning to more regular construction activity, but still remained slightly lower than February. Manitoba (+0.4%) was the only other province to report growth for the month in this component.

Gains in both the industrial (+35.1%) and institutional (+32.9%) sectors were also led by increases in Ontario and Quebec. Nationally, while reporting notable improvements, these components were still down 4.7% and 0.8%, respectively, from February levels.

Source

Related Articles


Latest Articles


Changing Scene

  • AALED Announces Website Launch

    AALED Announces Website Launch

    June 10, 2024 AALED, a leading B2B lighting distributor, is thrilled to announce the launch of its redesigned website, showcasing its dedication to embracing the new technological age. The revamped website provides a streamlined, user-friendly experience to support AALED’s clients better. “Our redesigned website aligns with our commitment to provide exceptional service and lighting solutions… Read More…

  • FLO and METRO to Deploy Public EV Fast Charging in Quebec and Ontario 

    FLO and METRO to Deploy Public EV Fast Charging in Quebec and Ontario 

    June 10, 2024  FLO, a leading North American electric vehicle (EV) charging company and smart charging solutions provider, and METRO Inc. announced a new partnership to provide fast charging at more than 130 Metro, Super C, Food Basics and Marché Adonis grocery store locations across Quebec and Ontario. The partnership, which will install at least 500 fast charging ports starting in August, will ensure EV… Read More…

  • Nanos Poll Suggests 58% of Canadians are Open to Installing Renewable Energy Devices on or in their Homes

    Nanos Poll Suggests 58% of Canadians are Open to Installing Renewable Energy Devices on or in their Homes

    June 7, 2024 According to a Nanos Research Poll, commissioned by Schneider Electric, the global leader in the digital transformation of energy management and automation, a majority of Canadians are receptive to the idea of installing renewable energy generating devices in their homes. The research, which assessed Canadians’ perspectives on the government’s efforts to meet carbon reduction goals,… Read More…

  • National Cable Specialists Introduce New Sales Manager for Eastern Canada

    National Cable Specialists Introduce New Sales Manager for Eastern Canada

    June 7, 2024 “It is with mixed emotions that we announce the retirement of Jean-Claude Khodeir (JC) as National Cable Specialists Sales Manager. JC’s achievements and accomplishments over 32 years of dedicated service are difficult if not impossible to sum up. He has been an integral part of the success and growth of National Cable… Read More…