Escalation Watch Second Quarter 2015
The mid-May 2015 Non-residential Building Construction Price Indices were released by Statistics Canada on August 11th. The third quarter indices for 2015 will be available mid-November.
The national composite index has continued its growth, rising again this quarter with a reported increase of 0.5%. Expressed year over year, the national composite index is up 1.1% over the same period in 2014 rising from 154.2 to 155.9. This increase continues to be attributed to higher material and labour prices.
All of the seven census metropolitan areas surveyed showed quarterly increases, with Ottawa (0.9%) and Montreal (0.7%) leading the way. Edmonton (0.5%) and Vancouver (0.5%) reported growth on par with the national composite index, with Toronto (0.4), Montreal (0.4%) and Calgary (0.3%) posting smallest increases.
Year over year, the composite price index rose 1.1%. Of the seven cities surveyed, Toronto (1.8%) recorded the largest year-over-year increase for the second quarter in a row, while Edmonton (-0.1%) again recorded the lone decline compared with the first quarter of 2014.
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 Capital Expenditures Price Statistics publication – catalogue 62-007-XWE. Specifically, we used the Non-residential Building Construction Price Indexes for the national composite and each surveyed city indicated on tables 7.2 through 7.9. 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