(Bloomberg) — Canada’s highways, shopping centres, schools and equipment are aging beyond replacement as infrastructure investment slows.

The average age of the country’s stock, excluding housing, was just over nine years in 2023, leaving 63.3 per cent of its “useful” life remaining, according to data released Thursday by Statistics Canada. It’s the eighth straight year that the so-called remaining useful life ratio has fallen, leaving the nation with the oldest infrastructure it’s had since 2009.

“A decline in the remaining useful life rate could indicate that new capital investment is needed,” Statistics Canada said.

The ratio is an estimate of the value of the remaining economic benefit in capital assets. Since 2015, the useful life rate of natural resources, including oil and gas, metal and timber assets, has declined sharply. In 2023, the retail sector saw the biggest decline, the agency said.

Prime Minister Justin Trudeau’s Liberals swept to power in 2015 in part on a promise to spend heavily on infrastructure. His government has invested billions of dollars in public transport projects and other initiatives, but data released Thursday suggests that neither government spending nor private investment is being implemented at sufficient levels to keep the capital stock from aging.

Finning International, which sells and services Caterpillar construction vehicles, reported revenue on Tuesday that fell short of estimates. In a press release, management said growth in Canada was lower than expected due to lower infrastructure spending.

In a separate release Thursday, Statistics Canada data showed the country’s gross non-residential capital stock grew by 1.5 per cent in real terms in 2023, driven by growth in engineering and intellectual property construction products. The value of capital machinery and equipment fell for the fourth consecutive year.

–With assistance from Jay Zhao-Murray and Stephanie Hughes.

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