Although economic activity dropped, the construction industry improved. However, growth has tapered off and gains remain uneven as segmental, sectoral and provincial divergences become more acute.

A steady stream of public works has supplemented the private sector’s investment slowdown, with industrial activity and trade-impacted geographies such as Ontario, bearing the brunt of falling confidence.

Input costs rose again, fueled by trade dislocation and skill imbalances. However, material gains are moderate and labour market slack is growing, pointing to muted growth in the short-term.

Our bid price forecasts have moderated in 2025 and 2026 as slower industry growth feeds into increased competition. Yet escalation in 2027 could regain traction as planned fiscal stimulus translates into future activity gains and renewed resource constraints.