December 20, 2023
SUMMARY
Total ICI building construction investment was down 0.7% from September to October. This was due to a lower level of investment in the commercial and institutional sectors. Industrial sector investment continues its steady upward trend. Ontario headline inflation remained unchanged between October and November at 3.3%. Inflation excluding food and energy increased from 3.7% to 3.8%, partly driven by higher services price inflation.
INVESTMENT
Monthly Changes
Total ICI investment in building construction decreased by 0.7% from September to October ($2.64 billion – $2.62 billion). This was primarily due to a slightly lower level of commercial building investment which decreased from $1.40 billion to $1.38 billion (-1.5%). Institutional sector investment also decreased slightly, from $615.9 million to $612.6 million (-0.5%). Industrial investment grew 0.9% ($619.4 million – $625.1 million).
Year-to-Date
Total investment in ICI building construction was up 13.2% compared to the same time last year, with the industrial sector experiencing the largest percentage change (30.6%).
ONTARIO CONSUMER PRICE INDEX
Ontario year-over-year headline inflation remained at 3.3% in November. Core inflation heated up slightly from 3.7% to 3.8%, driven partly by the increase in services price inflation, which increased from 4.4% to 4.6% (movements in core inflation tend to follow services inflation since services prices are stickier). Goods inflation decreased from 1.9% to 1.8%. Energy price inflation was -6.5%, the same as October.
INDUSTRIAL PRODUCT AND RAW MATERIAL PRICE INDEX
Decreasing Prices
Lumber and other wood products inflation was -11.4%, marking the 13th consecutive decrease in year-over-year prices; lumber product price inflation has been negative for over a year now. Energy and petroleum product prices declined -15.7% annually, a slightly lower deflation compared to the -16.9% from October. Fabricated metal and construction materials inflation was down 2.7%. This is the 9th consecutive drop in this category, as prices have been gradually cooling over the year. Plastic and rubber product inflation was -1.0%. This is the first negative reading in this category this year. Inflation in this product category hasn’t been this low since March 2021, when it was -2.0%.
Elevated Prices
Cement, glass, and other non-metallic mineral product inflation remains elevated, with annual price inflation at 9.5%.
Note: some of the numbers reported in the last price index bulletin have changed due to revisions by Statistics Canada.
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FOR MORE INFORMATION, CONTACT:
Ali Ahmad
Research Analyst
Ontario Construction Secretariat (OCS)
180 Attwell Drive, Suite 360, Toronto, ON M9W 6A9
P 416.620.5210 ext. 222
aahmad@iciconstruction.com
