According to Statistics Canada, investment in non-residential structures stumbled in the first quarter of the year, but CanaData consulting economist John Clinkard says the slowdown is temporary.
MARKHAM
According to Statistics Canada, investment in non-residential structures stumbled in the first quarter of the year, but CanaData consulting economist John Clinkard says the slowdown is temporary.
Business investment in non-residential structures slowed to +1.3 per cent in this quarter, despite a 2.5 per cent surge in investment in commercial buildings such as office buildings, factories and warehouses. The annualized rate of non-residential business investment dropped to +5.3 per cent, down from rates of in excess of 10 per cent recorded over the past two years.
Despite the first-quarter slowdown, Clinkard says the “fundamental driver of non-residential building, which is corporate profits, increased 3.1 per cent in the first quarter of 2007. This healthy increase suggests that firms will continue to invest solidly in non-residential structures through the end of 2007.”
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