A briefing released Wednesday by Statistics Canada reveals private investment in construction, machinery and equipments has dropped 6.6% from 2009, mainly due to the mining and oil and gas extraction industry.
Investment intentions in the mining and oil and gas extraction sectors is expected to drop to Cdn$44.9 billion, 26.4% less than in 2008. Mining, oil and gas capital spending is expected to decline primarily in Alberta and British Columbia.
These intentions are based on a sample survey of 28,000 businesses and governments that was conducted from October 2008 to late January 2009.
Investment intentions in the mining sector are down 26.4% to $5.6 billion in 2009, according to the Canadian government. Capital expenditures are also expected to fall substantially in the Northwest Territories and Nunavut, as a result of the mining industry slowdown.
Statistics Canada said the investment slowdown is most evident in the oil sand sector where investment is expected to total Cdn$13.2 billion this year, down more than 30% from last year.