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Québec City CMA: Non-residential investment increased 1.4% in the first half of 2017

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Highlights

  • According to Statistics Canada, $384.9 million were invested in the Québec City CMA in the first half of 2017, a 1.4% rise compared to the first half of 2016.
  • The area observed a rise in capital expenditures for the industrial (+54.2%) and institutional (+28.4%) sectors, while expenditures for the commercial sector slowed down by 13.4%.
  • For the province of Quebec, non-residential investment increased by 3.2% compared to last year, reaching $4.4 billion.

Commentary

Non-residential investment is still gradually accelerating in the Québec City CMA. In the first semester, capital expenditures reached $384.9 million, a 1.4% rise compared to the same period in 2016. The break experienced in 2016 provided an opportunity to assess future non-residential needs for the area . That reflexion led to new projects currently being started and allowed the area to follow the provincial uptrend in this sector (+3.2%). Moreover, the discipline and the good management of the sites which caracterise the region remain essential in leading multiple major sites simultaneously.

The addition of industrial spaces in Saint-Augustin and the Innoparc Lévis, as well as the improvement of existing infrastructures, are relaunching the industrial investment, now on the rise after three slow years. The expenses amounted to $51.9 million in the first half of 2017, an annual rise of 54.2%, bringing it to the level observed in 2013. Office buildings, recreotouristic and public projects stimulated the institutional sector. The investment increased by 28.4%, reaching $102.8 million. Despite the “Le Phare” project being postponed, the institutional sector should expect to meet it’s best year in nine years. As for the commercial sector, projects began gradually in Québec City, which would explain the 13.4% decrease in investments compared to last year, for a total of $230.2 million. We are confident that the revitalization of the Sainte-Foy, Lebourgneuf and Duplessis trade points will be able to correct the situation by the end of the year.

The first half of 2017 confirmed our expectations. The worksites are gradually starting and benefit all sectors. These conditions support our prevision that non-residential investment should reach around $850 million by the end of the year. In addition, worksites remain diversified in the Québec City area. According to a Québec International compilation, there are over 200 non-residential projects ongoing and planned in the area, and the value of capital expenditures is more than $8 billion.

Louis Gagnon
Senior Economist
Québec International

 
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LouisGagnonSenior Economist

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