Rising costs, trade risks cloud Canada’s construction outlook despite activity uptick

Canada's construction sector is facing uneven outlook heading into 2027, despite an uptick in activity last quarter, according to the Canadian Construction Association's latest report. While construction sector GDP rose by one percent in the second quarter, driven by gains in engineering and residential construction, rising material costs and slower residential demand pose challenges to sustaining this rebound.

Non-residential building construction costs increased by 3.5 percent year-over-year, while residential building construction costs rose by 2.3 percent. Additionally, trade risks, such as higher fuel prices, tariffs on steel and aluminum products, and additional duties on imported wood cabinets and vanities, are contributing to ongoing pricing pressures throughout the construction supply chain.

The sector's reliance on imported inputs, with 40 percent of inputs used by the industry coming from the U.S., further exacerbates these risks.

Brief written by urgent.news from Winnipeg Free Press's own syndicated text. Machine-written — may contain errors; check the original before relying on it.