CanaData’s latest construction starts forecasts are set out in the tables that accompany this report. The current year will see non-residential building starts in Canada drop to about half the level that they reached two years ago in 2007, 45.5 million square feet versus 92.1 million. The credit crunch, reduced international travel, lower world trade and high unemployment are all factors holding back privately-funded construction projects at this time. What is perhaps most remarkable, however, is the fact that interest rates remain so low in Canada and throughout the industrialized world. In no way are interest rates inhibiting factors with respect to investment.

Canada’s population grew by a surprisingly strong 0.36% in the second quarter of 2009. This was slightly less than the 0.38% recorded in Q2/2008, which was a 17-year high.

According to Statistics Canada, 70% of the second quarter population increase was due to net international migration, while natural increase (births minus deaths) accounted for the remaining 30%.

Reed Construction Data-CanaData updates its square footage forecasts for the major non-residential building categories of construction every second month.  Non-residential building, also known as ICI work, is comprised of the industrial, commercial and institutional categories. The 2009 total ICI forecast, based on actual starts in the first half of this year and an assessment of market prospects, has been revised down from 50.0 million square feet, as called for in May, to 47.5 million now. The net change is the result of commercial starts being marked up slightly and institutional and industrial being cut.