More Good News for Canadian Construction

There has been more good news for the building andconstructionsector with the latest data showing non-residential building activity at close to three year highs.

According to Statistics Canada, the seasonally adjusted value of non-residential building construction throughout the country increased by a healthy 1.8% in the June quarter to come in at $11.181 billion – the second highest level on record for the past three years (see chart).

Leading the way are the commercial and industrial sectors, whereby spending for both sectors is at its highest level in at least three years (see chart).

By contrast, activity is quiet in the institutional sector as work on public sector projects drops back.

In terms of regions, Ontario, Alberta and Quebec were the standout performers whilst New Brunswick, Prince Edward Island, Newfoundland and Labrador experienced declines in activity.

The latest data confirms that conditions in the Canadian construction industry are reasonably good for now.

Furthermore, forward looking indicators are encouraging, with four consecutive months (to May) of strong readings in non-residentialbuilding permit datasuggesting that the pace at which new work is coming in has picked up.

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