ICI investment remains level March to April: OCS

A recent economic report by the Ontario Construction Secretariat (OCS) revealed that investment in building construction for ICI was little changed from March to April, but still up +5.4 per cent year-over-year.

According to the report, commercial building investment saw a positive month-over-month change after a series of declines since July 2023.

The report noted that total ICI investment moved up slightly at +0.1 per cent month-over-month, increasing from $2.50 billion in March to $2.51 billion in April.

According to the report, commercial building investment increased the same dollar amount, from $1.20 billion to $1.21 billion.

While the trend of steadily declining investment reversed, the report noted that it was still lower than it was in April 2023. This was also reflected in the year-to-date commercial investment, according to the report, which was about -5.6 per cent compared to the prior year.

According to OCS, industrial investment contracted a few ticks at -0.2 per cent month-over-month, from $654.4 million to $652.9 million but remained above last year’s level.

In terms of institutional investment, it was also relatively unchanged with a -0.1 per cent month-over-month change, from $642 million to $641.6 million.

The report noted, however, that there was still a significant +24.5 per cent year-over-year change compared to April 2023.

Overall, the data suggests that the slowdown in commercial sector building activity stalled in April but remains lower compared to last year. Additonally, despite the minor slowdown in industrial and institutional investment, both sectors are likely experiencing more activity versus 2023, according to the report.