OTTAWA, Aug. 31 /CNW/ - Non-residential construction investment
increased in the second quarter of 2010, after declining for five
consecutive quarters. Despite the uptick in activity, industry profits
will fall to a five-year low in 2010, according to The Conference Board
of Canada's Canadian Industrial Outlook: Canada's Non-Residential
Construction Industry - Summer 2010.
"Although the industry finally saw gains in the second quarter, spending
on commercial and industrial space will be down this year compared to
2009," said Michael Burt, Associate Director, Industrial Economic
Trends. "High vacancy rates are limiting growth. In addition, the
institutional segment, which has been the industry's main source of
growth over the past 18 months, is expected to weaken as government
stimulus spending comes to an end."
Spending on non-residential construction is not expected to return to
pre-recession levels before 2012. Growth in demand will remain too weak
to offset the effects of large declines in investment at the end of 2009
and earlier this year. Falling prices also continue to detract from
As a result, pre-tax profits are expected to fall to a five-year low of
$1.2 billion in 2010. Improving market conditions will allow profit
growth to resume in 2011, but industry profits are not expected to
return to their pre-recession levels before 2014.
SOURCE Conference Board of Canada
For further information: For further information:
Brent Dowdall, Media Relations, Tel.: 613- 526-3090 ext. 448