Spending on buildings, machinery to rise in 2013, but at lowest pace since 2009

OTTAWA – Statistics Canada says investment in construction and machinery and equipment should reach $398.2 billion in 2013, up 1.7 per cent from 2012.

But the increase, based on forecasts of public and private organizations, including the housing sector, would be the smallest since the economic downturn in 2009.

It says the main contributor to the slowdown is an anticipated decline in investment reported by the mining and oil and gas extraction sector, although strong increases are expected in the utilities sector and in transportation and warehousing.

Of total investment, capital spending by the public sector is anticipated to rise five per cent to $88 billion, while private sector investment is expected to edge up 0.8 per cent to $310.2 billion.

Of the private sector total, investment in housing is anticipated to rise 0.2 per cent to $104.7 billion, while investment in non-residential construction is expected to rise 1.4 per cent to $178.9 billion.

Spending on capital machinery and equipment is anticipated to increase 3.6 per cent to $114.6 billion.