CAPITAL INVESTMENT EXPECTED TO SET NEW RECORD IN 2008

New estimates for private and public investment intentions are just out, and show Saskatchewan is poised for its best year ever in capital spending.

A Statistics Canada survey released today estimates that Saskatchewan will top the $12 billion mark in capital investment for the first time ever. The report pegs capital spending intentions at $12.3 billion in 2008, an 18 per cent increase from that of 2007.

That's the second highest percentage increase among the provinces, just slightly behind Manitoba at 18.8 per cent, and more than three times the national average of 5.2 per cent.

"This signal of a record year ahead, particularly in private sector investment, is very encouraging and represents a confidence by business that we take very seriously," Enterprise and Innovation Minister Lyle Stewart said. "Our job will be to sustain and improve on investment numbers by creating a more dynamic business climate that will provide even more confidence for the business community in the province."

Private investment intentions for 2008 totalled $10.1 billion (up 20.4 per cent, second highest increase among the provinces), while public investment intentions are estimated to reach $2.3 billion (up 8.7 per cent, seventh highest among the provinces).

Preliminary estimates for 2007 were revised to $10.4 billion (up from $9.8 billion), while the actual figures for 2006 were revised to $10.3 billion (up from $9.65 billion).

In 2008, capital investment is expected to consist of $8.2 billion in new construction and $4.1 billion in new machinery and equipment.

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For more information, contact:

Deb Young
Enterprise and Innovation
Regina
Phone: 306-787-1691
Email: Deb.Young@gov.sk.ca