Private and public-sector B.C. organizations plan to ramp up capital spending this year, focusing primarily on construction activity and the resource sector.
According to Statistics Canada, current-dollar investment is expected to rise to $50.7 billion in 2012. If organizations make good on their investment intentions, this would mark a 10.1 per cent gain from preliminary 2011 actual spending and B.C.’s growth would be among the highest in Canada. B.C growth would only be exceeded by Newfoundland and Labrador (26.9 per cent) and Alberta (10.3 per cent).
Construction activity is expected to lead B.C. growth in 2012, with investment intentions reaching $38.3 billion, up 13.1 per cent from 2011 levels. In contrast, investment in machinery and equipment is expected to edge up by about 1.8 per cent. As this is current-dollar growth, real investment in machinery and equipment will be relatively unchanged.