Canadian Business Investments to Slow in 2013
Statistics Canada released today their report on private and public investment for 2013. Public and private organizations as well as the housing sector estimated their expected capital investments to reach $398.2 billion throughout 2013, up a total 1.7 per cent from 2012. This estimation is the smallest increase since 2009 and the economic downturn.
The mining, oil and gas extraction sector is leading the slow down followed closely by information and cultural industries as well as educational services.
Of the decline in investment in the mining, oil and gas industry, two provinces are accountable for the decrease, Ontario and British Columbia. In Ontario, investment is declining by $1.2 billion, 30.3 per cent. In British Columbia, investment will decrease by $2.4 billion, a total of 25.8 per cent.
On the other hand, utilities, transportation and warehousing offset the slow down by their expected strong increases in investment.
Even further, investment in non-residential construction, machinery and equipment by utilities is expected to total $31.3 billion, which is up 7.7 per cent from 2012. This increase is led by the electric power generation and transmission and distribution industries, accounting for 65 per cent, specifically in Ontario where capital spending is anticipated to increase by $943.6 million.
Of the $398.2 billion, the public sector is anticipated to contribute $88 billion, a rise of 5 per cent, while the private sector will increase 0.8 per cent to $310.2 billion.