The Construction Quarterly Insights Report is your essential guide to understanding the current state and future direction of Canada’s construction sector. Produced by the Canadian Construction Association (CCA), this exclusive report delivers expert analysis on economic trends, policy developments, and market forces impacting your business. Whether you’re planning for growth, managing risk, or advocating for change, the insights in this report are tailored to help CCA members make smarter, faster decisions.
View our most recent issues below.
Essential reading for every construction leader navigating today’s challenges
Summer 2026
Highlights:
- Economy stalled in Q1, with a softer outlook ahead: Canada’s real GDP slipped at an annualized rate of 0.1 per cent in Q1 2026, as higher imports and weaker investment offset growth in other areas. Business capital spending fell for a fifth consecutive quarter, while weapons system spending pulled back after the late-2025 surge. Overall, growth is expected to remain softer through 2026.
- Construction activity continued to cool: Construction GDP contracted 1.3 per cent quarter-over-quarter (QOQ), driven by a 4.2 per cent drop in engineering and other construction activities. Building construction investment declined by 1.5 per cent, with weakness in the residential sector outweighing gains in commercial and institutional construction. Building permits were broadly flat, with improving single-residential and industrial intentions offset by weaker commercial and institutional permits.
- Inflation continues to rise in steel-heavy divisions: Overall construction price inflation eased in Q1 across most divisions, regions, and building types. However, structural steel framing and metal fabrication costs were still about 10 per cent higher than a year earlier. Inflation was lowest for high-rise apartments and highest for factories.
Spring 2026
Highlights:
- Economy softened in Q4, but domestic demand held up: Canada’s real GDP declined at an annualized rate of 0.6 per cent in Q4 2025, driven almost entirely by inventory drawdowns. Manufacturing output eased as producers worked down inventories while continuing to meet resilient consumer demand. Final domestic demand increased 0.6 per cent, supported by a 0.5 per cent rise in consumption and a 0.8 per cent gain in gross fixed capital formation.
- Construction Q4 output pulls back: Construction GDP slipped 0.6 per cent quarter-over-quarter, while still posting a 1.8 per cent year-over-year gain. The quarterly pullback was driven mainly by engineering and other construction activities after strong growth in Q3.
- Building cost pressures concentrated in steel-heavy divisions: The Building Construction Price Index (BCPI) rose 4.1 per cent year-over-year in Q4, led by metal fabrications, structural steel framing, concrete, and plumbing. Building types with highest steel mix, like factories, are seeing the highest increase in construction costs, while cost inflation in high-rise apartments eased to 2.2 per cent.
Winter 2026
Highlights:
- Canadian economy steadied: GDP rebounded in the third quarter of 2025, growing at an annualized rate of 2.6 per cent, surpassing $2.5 trillion. As the Bank of Canada moves to 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 weakened by a further 5.1 per cent to $32.5 billion in Q3, representing a 9.9 per cent year-over year (YOY) decline. Ontario recorded the largest drop, with permit values down 15 per cent quarter-over-quarter. However, early Q4 permit activity suggests a rebound that could make up for the slack in Q2 and Q3, lifting the annual total into positive territory.
- Cost pressures remain elevated: Construction input costs continue to rise, led by steel-intensive divisions. The Building Construction Price Index (BCPI) increased 4.2 per cent YOY. Contractors should plan for ongoing price volatility, especially in factory construction and in higher-inflation regions like London and Quebec City.
- Federal Budget bolsters construction demand: Budget 2025 reinforces long-term construction demand, committing $280 billion over five years in capital investments. New measures introduce $150 billion in net spending before operational savings, with roughly one-fifth tied to construction-related activity. This package is built around three core federal priorities: attracting private investment, prioritizing Buy Canadian procurement, and supporting unionized labour.
Check out some of our past issues.