The latest Public and Private Investment (PPI) intentions survey, released in February 2013, indicates about $11.0 billion of planned expenditures for 2013 – representing a 9.7% increase over 2012.
The increase in expected capital spending in 2013 is mainly due to a large increase in construction spending. Construction spending is expected to increase by $1.3 billion or 16.6% while machinery and equipment spending is expected to decrease by $366 million or 18.8%.
On an industry basis, the most significant contributors to the expected rise in investment are the oil and gas extraction sector and the utilities sector increasing $2.1 billion and $266.8 million respectively. This reflects increased activity on major projects such as Hebron and the Muskrat Falls project.
|Newfoundland and Labrador ($ millions)|
|Industry||2012||2013||Actual Change||% Change|
|Mining and Oil & Gas Extraction (with Support Activities)||3,848.8||5,444.7||1,595.9||41.5%|
|Oil and Gas Extraction||2,578.2||4,708.6||2,130.4||82.6%|
|Finance & Insurance||110.0||100.3||-9.7||-8.8%|
|Real Estate and Rental and Leasing||107.5||107.8||0.3||0.3%|
|Health Care & Social Assistance||223.3||213.2||-10.1||-4.5%|
|Source: Statistics Canada
Note: 2012 is preliminary actual data; 2013 is intentions data.
It should be noted that 2013 capital expenditure intentions released by Statistics Canada differ from the Department of Finance’s forecast of total capital investment outlined in the table of Selected Economic Indicators
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 .