The latest Public and Private Investment (PPI) intentions survey, released in February 2012, indicates about $9.4 billion of planned expenditures for 2012 – representing a 26.9% increase over 2011.
The increase in expected capital spending in 2012 is mainly due to a large increase in construction spending. Construction spending is expected to increase by $1.6 billion or 28.2% while machinery and equipment spending is expected to increase by $338 million or 22.0%.
On an industry basis, the most significant contributors to the expected rise in investment are the oil and gas extraction sector; manufacturing sector; and the mining sector increasing $863.4 million, $621.8 million, and $392.7 million respectively. This reflects increased activity on major projects such as Hebron, Hibernia South Extension, the nickel processing plant in Long Harbour and the Iron Ore Company of Canada’s expansion.
| Capital Expenditures | ||||
|---|---|---|---|---|
| Newfoundland and Labrador ($ millions) | ||||
| Industry | 2011 | 2012 | Actual Change | % Change |
| Manufacturing | 799.5 | 1,421.3 | 621.8 | 77.8% |
| Oil & Gas Extraction | 1,859.4 | 2,722.8 | 863.4 | 46.4% |
| Mining | 637.0 | 1,029.7 | 392.7 | 61.6% |
| Support Activities for Mining and Oil and Gas Extraction | 171.4 | 178.8 | 7.4 | 4.3% |
| Construction | 110.0 | 115.1 | 5.1 | 4.6% |
| Trade | 170.8 | 182.5 | 11.7 | 6.9% |
| Finance & Insurance | 62.3 | 47.4 | -14.9 | -23.9% |
| Real Estate and Rental and Leasing | 118.4 | 131.1 | 12.7 | 10.7% |
| Educational Services | 154.4 | 145.4 | -9.0 | -5.8% |
| Health Care & Social Assistance | 130.0 | 124.7 | -5.3 | -4.1% |
| Public Administration | 620.8 | 605.6 | -15.2 | -2.4% |
| Housing | 1,811.2 | 1,792.8 | -18.4 | -1.0% |
| Other Industries | 730.5 | 861.1 | 130.6 | 17.9% |
| Total | 7,375.7 | 9,358.3 | 1,982.6 | 26.9% |
| Source: Statistics Canada Note: 2011 is preliminary actual data; 2012 is intentions data. |
||||
Statistical Reference:Statistics used in this analysis were the latest available at the time of writing. For the latest in investment statistics visit the Newfoundland & Labrador Statistics Agency .