Paul Martin’s Business Update – October 20th, 2014

One of the key indicators of how the provincial economy is performing is investment. It has been the primary catalyst for the growth we’ve seen in the past decade, as companies and the public sector both devote increased spending on capital projects.

This can include everything from plant and equipment to technology. The most visible investment we’ve seen in recent years is in the resource sector with potash mines being refurbished and expanded or new ones started. We’ve also seen big money poured into oil development.

And there’s been a lot of building. Look at virtually any community and it is easy to see new housing, new roads and infrastructure or expanded retail capacity.

So we watch this particular metric closely to see if there is any sea change, any significant reductions that might signal an end to the growth cycle.

The latest figures to come out on this front examine the third quarter of the year and are restricted to non-residential construction. This is only one component of the overall investment picture but it is useful in charting how things are going.

And it shows continued expansion, particularly on the commercial front which includes office buildings. Overall the category rose more than seven percent over last year.

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