Gross Domestic Product (GDP) in Canada remains steady, with inflation becoming more manageable and interest rates falling. Yet signs of strain are beginning to emerge as the labour market continues to underwhelm and the unemployment rate remains elevated.

Canada’s construction industry, however, has begun to stabilize. Improved confidence and easing liquidity constraints have helped support industry growth for the first time in four quarters. Continued strength in the institutional and governmental sector and recovery in commercial workloads have also bolstered performance, while Ontario’s housing market has begun to show signs of encouragement amidst shortages.

Input cost pressures are also settling. Construction wage growth has softened, albeit skill shortages for select trades exist. Material costs, while still lofty compared to the pandemic levels, have started to recalibrate and machinery and equipment costs are becoming less problematic. Escalation has also eased, but bid prices are still increasing. However, competition is growing which supports commercial tension that could encourage investment decisions and spur more development.