The Canadian economy has steadied: GDP rebounded in the third quarter of 2025, growing at an annualized rate of 2.6 per cent and surpassing $2.5 trillion. As the Bank of Canada moves to the sidelines, interest rates are expected to remain at 2.25 per cent through much of 2026.
Building permits lowered further in Q3: Following a downturn in the second quarter, building permits declined another 5.1 per cent to $32.5 billion in Q3, marking a 9.9 per cent year-over-year (YOY) drop. However, early Q4 activity suggests a rebound that could offset earlier weakness and push the annual total into positive territory.
Cost pressures remain elevated: Construction input costs continue to rise, particularly in steel-intensive divisions. The Building Construction Price Index (BCPI) increased 4.2 per cent YOY.
Source: Canadian Construction Association (CCA) https://www.cca-acc.com/advocacy/economic-insights/
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