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November 29, 2024NON-RESIDENTIAL FIXED CAPITAL INVESTMENT, Q3 2024 Non-residential fixed capital investment consists of expenditures made by business, governments and non-profit institutions serving households that add to the capital stock for production of goods and services in an economy. Investment that are included are buildings, engineering construction (i.e. bridge, mine structure), machinery and equipment, and intellectual property products (i.e. software, mineral exploration) but it doesn’t include non-reproducible assets (lands, mineral deposits, natural resources) or housing investment. Statistics Canada has begun to release quarterly data on non-residential fixed capital investment and stock for the provinces with historical data back to 2013. Note, the data is not seasonally adjusted and expressed in current prices.
Year-over-year (Q3 2024 vs Q3 2023)
Nova Scotia non-residential investment (all sectors, all assets, current prices) increased 19.1% from Q3 2023 to Q3 2024; this was the fastest growth rate among all provinces. Nationally non-residential investment was up 3.9% with gains in all provinces.
Business sector investment in Nova Scotia increased 1.6%. National business non-residential investment was up 2.4% with gains in all provinces. British Columbia reported the fastest growth and Prince Edward Island reported the slowest.
Government fixed capital investment increased 37.0% in Nova Scotia from Q3 2023 to Q3 2024, the largest gain among the provinces. Across Canada, government investment (which includes all orders of government) was up 8.6% with gains in all provinces. Saskatchewan and Alberta reported the slowest growth.
Nova Scotia non-residential building investment was up 7.5% compared to Q3 2023, the second fastest increase among provinces. Nationally, non-residential building investment was up 5.0% with gains in all provinces. The fastest growth was in Newfoundland and Labrador and slowest in Ontario.
Engineering construction investment was up 3.1% in Nova Scotia and 3.8% across Canada. All provinces reported higher investments in engineering construction with the fastest growth in Newfoundland and Labrador and Alberta. Prince Edward Island reported the slowest growth.
Machinery and equipment investment was up 42.7% in Nova Scotia, a substantially faster rise than in any other province. Nationally, machinery and equipment investment was up 2.3% with gains in all provinces except Saskatchewan and Alberta.
Intellectual property investment was up 5.1% in Nova Scotia compared to Q3 2023. Nationally, intellectual property investment was up 5.1% with gains in all provinces led by Ontario. The slowest growth was in Newfoundland and Labrador.
Nova Scotia's investments in fixed non-residential capital were larger in government investment ($1,392 million) than business investment ($1,049 million). Machinery and equipment made up the largest asset category of investment ($1,096 million). Investments in engineering construction ($574 million) were larger than those in non-residential buildings ($387 million) and to intellectual property ($388 million).
Growth was stronger for machinery and equipment as well as government sector investments. All asset categories reported higher investment than in Q3 2023.
Year-to-date (Q1-Q3 2024 vs Q1-Q3 2023)
Nova Scotia non-residential investment (all sectors, all assets, current prices) increased 15.0% comparing the first three quarters of 2024 with the same period in 2023, highest among all provinces. Nationally non-residential investment was up 3.1% with gains in all provinces. Slowest growth was in Saskatchewan.
Business sector investment in Nova Scotia increased 1.7% year-to-date. National business non-residential investment grew 1.5% with gains in all provinces. Ontario reported the fastest gain while Newfoundland and Labrador reported the slowest growth.
Government fixed capital investment increased 29.3% in Nova Scotia from the first three quarters of 2023 to the first three quarters of 2024, the largest gain among the provinces. Across Canada, government investment (which includes all orders of government) was up 8.0% with gains in all provinces. Saskatchewan and Alberta reported the slowest gains compared to other provinces.
Nova Scotia non-residential building investment was up 8.4% compared to Q1-Q3 2023, the second fastest increase among provinces. Nationally, non-residential building investment was up 5.9% with gains in all provinces. The fastest growth was in Newfoundland and Labrador and slowest in Ontario.
Engineering construction investment was unchanged in Nova Scotia and up 0.24% across Canada. All provinces reported higher investments in engineering construction except Prince Edward Island and Nova Scotia (reported no change). Newfoundland and Labrador reported the largest growth.
Machinery and equipment investment was up 31.3% year-to-date in Nova Scotia, a faster rise than in any other province. Nationally, machinery and equipment investment was up 3.6% with gains in all provinces. Saskatchewan and Alberta reported the slowest gains.
Intellectual property investment was up 5.0% in Nova Scotia compared to Q1-Q3 2023. Nationally, intellectual property investment was up 4.7% with gains in all provinces. The fastest growth was in Prince Edward Island and the slowest in Newfoundland and Labrador.
Nova Scotia's investments in fixed non-residential capital were larger in government investment ($3,614 million) than business investment ($3,058 million), year-to-date. Machinery and equipment made up the largest asset category of investment ($3,053 million). Investments in engineering construction ($1,362 million) were larger than those in non-residential buildings ($1,126 million) or intellectual property ($1,146 million).
Growth was stronger for machinery and equipment and for the government sector in Nova Scotia. Engineering construction posted no change.
Trends
Nova Scotia's non-residential investment has generally trended up on a year-over-year basis (except 2020).
Business sector non-residential investment trended downward over 2016 to 2020, before trending upwards over 2021-2023. However, business sector investment has stalled in Q3 2024, with little gain over the Q3 2023 value.
Government sector was mostly flat from 2014 through 2017, then trended upwards from 2017 to 2023, followed by a notable acceleration in Q3 2024.
Non-profit institution serving households was little changed (at a low value) from 2019 through 2024.
Nova Scotia's investments in non-residential buildings declined from 2013 to 2017 and rose in 2018 and 2019. After a dip in 2020, Nova Scotia's investment in non-residential buildings recovered to its rising trend from 2021-2024.
Nova Scotia's investments in engineering construction assets have trended up since 2018.
Nova Scotia's investments in machinery and equipment assets have been notably stronger in the last year.
Nova Scotia's investments in intellectual property products has mostly trended up since 2013 with occasional spikes associated with specific offshore exploration projects.
Statistics Canada. Table 34-10-0163-01 Flows and stocks of fixed non-residential and residential capital, by sector and asset, provincial and territorial (x 1,000,000)