Spending on buildings, machinery to rise in 2013: StatsCan

Investment in construction and manufacturing machinery and equipment in Canada should reach $398.2 billion in 2013, up 1.7 per cent from 2012, according to Statistics Canada.  

It sounds like good news, 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.

According to Statscan, 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 inch upwards to 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, StatsCan said, 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.