Investment in non-residential building construction rose 0.9% in the second quarter of 2008 on the strength of rising construction prices, Statistics Canada reported today.

Investment reached $10.5 billion between April and June, up from $9.8 billion during the same period a year ago.

StatsCan says spending on medical facilities and office buildings led the increase.

But after accounting for the higher construction prices, investment in non-residential construction actually fell 3.7% in 2002 constant dollars.

The biggest dollar increases occurred in Ontario, Alberta, Saskatchewan and Quebec.

British Columbia posted the largest drop as a result of lower spending on commercial, institutional and industrial projects.

Overall, 21 of the 34 census metropolitan areas posted quarterly declines, with Vancouver posting a decline of 7.7%, the biggest drop.