July 22, 2024
SUMMARY
Investment in ICI building construction grew 0.7% from April to May and was up +5.9% year-over-year (y/y). Increases were very mild across the board, with the highest percent change being +1.8% m/m in the institutional sector.
INVESTMENT IN BUILDING CONSTRUCTION
Total ICI investment climbed +0.7% m/m, increasing from $2.51 billion (B) in April to $2.53B in May (up +5.9% y/y). This is the second relatively mild month in a row for investment, as changes in March to April were of a similar magnitude. Commercial building investment increased from $1.21B to $1.22B (+0.1% m/m). However, year-to-date (YTD) commercial investment still showed weakness at -5.6% compared to the prior year. Industrial investment inched forward +0.7% m/m, from $652.9M to $657.4M but remained above last year’s level (up +13.4% y/y). Institutional investment experienced a larger increase, from $641.6M to $653M and was up +25.1% y/y. Overall, the data suggests that commercial sector building activity is still weak compared to last year. This is correlated with the weakness in consumer spending as households tighten spending in the face of high interest and debt. The industrial and institutional sectors continue a steady month-to-month trend upward at higher levels compared to last year.
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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
