Investment in building construction increased by 1.9% to $18.4 billion in December. Gains were reported in both the residential and non-residential sectors.
On a constant dollar basis (2012=100), investment in building construction grew 1.2% to $11.5 billion.
Chart 1 Investment in building construction, seasonally adjusted
Single-unit construction drives residential sector
Residential construction investment rose 2.2% to $13.4 billion in December, with Ontario accounting for more than half of the monthly increase.
Investment in single family homes was up 3.5% to $7.4 billion with increases posted in eight provinces.
Multi-unit construction investment increased by 0.7% to $6.1 billion. Gains from Ontario (+1.0%) helped to offset declines posted in Quebec (-1.0%) and Saskatchewan (-5.5%). New Brunswick and Nova Scotia also showed notable strength.
Infographic 1 Investment in residential building construction, December 2021
Chart 2 Investment in residential building construction, seasonally adjusted
Non-residential investment increases for sixth straight month
Commercial investment advanced by 1.7% to $2.7 billion. Alberta (+6.5%) led the way, partly because of the BMO convention centre expansion project in Calgary.
Industrial construction investment increased by 1.6% to $842 million, led by Ontario (+2.4%) and Quebec (+1.9%).
Conversely, investment in institutional construction posted its first decline since late 2020, with eight provinces reporting decreases.
Overall, non-residential construction investment increased by 1.1% in December to $4.9 billion.
Infographic 2 Investment in non-residential building construction, December 2021
Non-residential investment reports best quarter in four years
Investment in non-residential construction was up 4.1% to $14.7 billion, representing the largest quarterly increase since the third quarter of 2017. Gains were led by the commercial component (+4.9%), which posted its fourth consecutive quarterly increase. Institutional (+4.2%) and industrial components (+1.2%) showed strength as well.
Investment in residential construction was up 1.0% compared with the third quarter, with most of the growth coming from Ontario. Newfoundland and Labrador also posted notable gains following several quarterly declines. Single-unit investment was up 1.4% with increases in eight provinces, while multi-unit investment edged up 0.5%.
Overall, the total value of investment in building construction increased by 1.8% to $54.2 billion in the fourth quarter.
Annual review of 2021
Overall, investment in building construction had a record year, jumping 19.3% to $218.2 billion in 2021. On a constant dollar basis (2012=100), investment in building construction advanced moderately by 3.0%, reflecting strong growth in construction costs in 2021.
Investment in residential construction was up 28.4% to $162.0 billion, with single-unit investment accounting for more than half of the gain. Similarly, Canada Mortgage and Housing Corporation reported a 20% jump in construction starts from 2020.
Despite a strong fourth quarter, investment in non-residential construction saw a slight decrease of 0.9% to $56.2 billion in 2021. The decrease reported by commercial (-5.4%) and industrial (-3.4%) construction was somewhat offset by growth in institutional investment (up 12.0% to $15.2 billion).
Infographic 3 Investment in residential building construction, 2021
Infographic 4 Investment in non-residential building construction, 2021
For more information on housing, please visit the Housing Statistics Portal.
Note to readers
Unadjusted data for the current reference month are subject to revision based on late responses. Data for the previous month have been revised. Seasonally adjusted data for the previous two months have also been revised.
Data presented in this release are seasonally adjusted with current dollar values unless otherwise stated. Using seasonally adjusted data allows month-to-month and quarter-to-quarter comparisons by removing the effects of seasonal variations. For information on seasonal adjustment, see Seasonally adjusted data – Frequently asked questions.
Monthly estimates in constant dollars are calculated using quarterly deflators from the Building Construction Price Index (table 18-10-0135-01). Typically, the first two months of a quarter use the previous quarter’s price level, and the data are revised when the new quarterly price index becomes available.
Detailed data on investment activity by type of building and type of work are now available in the unadjusted current dollar series.
Next release
Data on investment in building construction for January will be released on March 14, 2022.
Products
Statistics Canada has a Housing Market Indicators dashboard. This web application provides access to key housing market indicators for Canada, by province and by census metropolitan area. These indicators are automatically updated with new information from monthly releases, giving users access to the latest data.
TORONTO – Canada’s main stock index was down more than 200 points in late-morning trading, weighed down by losses in the technology, base metal and energy sectors, while U.S. stock markets also fell.
The S&P/TSX composite index was down 239.24 points at 22,749.04.
In New York, the Dow Jones industrial average was down 312.36 points at 40,443.39. The S&P 500 index was down 80.94 points at 5,422.47, while the Nasdaq composite was down 380.17 points at 16,747.49.
The Canadian dollar traded for 73.80 cents US compared with 74.00 cents US on Thursday.
The October crude oil contract was down US$1.07 at US$68.08 per barrel and the October natural gas contract was up less than a penny at US$2.26 per mmBTU.
The December gold contract was down US$2.10 at US$2,541.00 an ounce and the December copper contract was down four cents at US$4.10 a pound.
This report by The Canadian Press was first published Sept. 6, 2024.
TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in technology, financial and energy stocks, while U.S. stock markets also pushed higher.
The S&P/TSX composite index was up 171.41 points at 23,298.39.
In New York, the Dow Jones industrial average was up 278.37 points at 41,369.79. The S&P 500 index was up 38.17 points at 5,630.35, while the Nasdaq composite was up 177.15 points at 17,733.18.
The Canadian dollar traded for 74.19 cents US compared with 74.23 cents US on Wednesday.
The October crude oil contract was up US$1.75 at US$76.27 per barrel and the October natural gas contract was up less than a penny at US$2.10 per mmBTU.
The December gold contract was up US$18.70 at US$2,556.50 an ounce and the December copper contract was down less than a penny at US$4.22 a pound.
This report by The Canadian Press was first published Aug. 29, 2024.
The crypto market has recently experienced a significant downturn, mirroring broader risk asset sell-offs. Over the past week, Bitcoin’s price dropped by 24%, reaching $53,000, while Ethereum plummeted nearly a third to $2,340. Major altcoins also suffered, with Cardano down 27.7%, Solana 36.2%, Dogecoin 34.6%, XRP 23.1%, Shiba Inu 30.1%, and BNB 25.7%.
The severe downturn in the crypto market appears to be part of a broader flight to safety, triggered by disappointing economic data. A worse-than-expected unemployment report on Friday marked the beginning of a technical recession, as defined by the Sahm Rule. This rule identifies a recession when the three-month average unemployment rate rises by at least half a percentage point from its lowest point in the past year.
Friday’s figures met this threshold, signaling an abrupt economic downshift. Consequently, investors sought safer assets, leading to declines in major stock indices: the S&P 500 dropped 2%, the Nasdaq 2.5%, and the Dow 1.5%. This trend continued into Monday with further sell-offs overseas.
The crypto market’s rapid decline raises questions about its role as either a speculative asset or a hedge against inflation and recession. Despite hopes that crypto could act as a risk hedge, the recent crash suggests it remains a speculative investment.
Since the downturn, the crypto market has seen its largest three-day sell-off in nearly a year, losing over $500 billion in market value. According to CoinGlass data, this bloodbath wiped out more than $1 billion in leveraged positions within the last 24 hours, including $365 million in Bitcoin and $348 million in Ether.
Khushboo Khullar of Lightning Ventures, speaking to Bloomberg, argued that the crypto sell-off is part of a broader liquidity panic as traders rush to cover margin calls. Khullar views this as a temporary sell-off, presenting a potential buying opportunity.
Josh Gilbert, an eToro market analyst, supports Khullar’s perspective, suggesting that the expected Federal Reserve rate cuts could benefit crypto assets. “Crypto assets have sold off, but many investors will see an opportunity. We see Federal Reserve rate cuts, which are now likely to come sharper than expected, as hugely positive for crypto assets,” Gilbert told Coindesk.
Despite the recent volatility, crypto continues to make strides toward mainstream acceptance. Notably, Morgan Stanley will allow its advisors to offer Bitcoin ETFs starting Wednesday. This follows more than half a year after the introduction of the first Bitcoin ETF. The investment bank will enable over 15,000 of its financial advisors to sell BlackRock’s IBIT and Fidelity’s FBTC. This move is seen as a significant step toward the “mainstreamization” of crypto, given the lengthy regulatory and company processes in major investment banks.
The recent crypto market downturn highlights its volatility and the broader economic concerns affecting all risk assets. While some analysts see the current situation as a temporary sell-off and a buying opportunity, others caution against the speculative nature of crypto. As the market evolves, its role as a mainstream alternative asset continues to grow, marked by increasing institutional acceptance and new investment opportunities.
