Paul Martin's Business Update - October 18th

Paul Martin's Business Update - October 18th

The most important indicator that economists are watching to test the temperature of the Saskatchewan economy is investment.

For the last decade or so we have seen investment levels consistently rising – from the $7 billion a year range ten years ago to more than $20 billion annually now. That trebling of fresh capital flowing into mines, oil wells and buildings to house both people and businesses has led to unprecedented the expansion.

Economists have been watching to see when this will level off. In all likelihood, we’ll see a slight pull back from the $21 billion peak as we find a plateau. Where and when that will be is anybody’s guess.

So that’s why we watch investment figures so closely. One number that has come out is in the area of non-residential construction. It is only a piece of the puzzle but it’s something we watch.

The latest quarterly report shows a slight decline in the province. Industrial investment rose as did spending on institutional buildings such as schools. But commercial structure investment dropped slightly. So all in, it looks like no change yet.

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