Escalation Watch Second Quarter 2016
Statistics Canada’s 2016, second quarter, Non-residential Building Construction Price Indices are now available. The third quarter indices for 2016 will be available mid-November.
The national composite index rose 0.4% in second quarter of 2016. This increase has been attributed to higher wages and material prices over the first quarter.
Quarterly gains were reported in five of the seven census metropolitan areas surveyed, with Toronto (1.8%) leading the way with the largest quarterly increase. Vancouver (1.5%), Montreal (0.9%) and Halifax (0.5%) all outpaced the national composite index with Ottawa (0.3%) following closely behind. Declines were reported in Edmonton (-1.6%) and Calgary (-1.5%).
Year over year, the composite price index continued its rise, up 0.5%. The largest year over year increase was reported in Vancouver, up 3.4%, with Toronto (3.1%), Montreal (1.6%), Ottawa (1.1%) and Halifax (0.9%) following suit. Edmonton (-3.8%) and Calgary (-4.2%) reported the only decreases compared with the second quarter of 2015.
It bears remembering that the indices prepared for Statistics Canada are intended only to track cost changes in a given city. The index cannot be used to compare costs between cities.
The source data used to prepare the charts in this newsletter is drawn from Statistics Canada’s CANSIM, specifically table 327-0043. Readers are cautioned that Statistics Canada does, on occasion, restate indices from previous quarters. Individual city and national composite indices reported in this newsletter reflect these changes. Indices restated from the previous report are highlighted for ease of reference where appropriate.
More information about this and other construction related indices published by Statistics Canada are available on line at www.statcan.gc.ca.
- Susan Neil, PQS, MRICS
Executive Vice President