Canada’s road to economic recovery is on the horizon
Canada’s economic indicators, like other nations, suggests the road to economic recovery is on the horizon, according to our latest Canada market intelligence report.
Cities across the country are lifting restrictions and re-opening at various stages – these positive measures have led experts to forecast growth in the construction industry. Beyond construction, other sectors such as travel and hospitality are starting to see some signs of recovery thanks to the vaccine rollout, ease of public health restrictions and border measures for USA-Canada.
In this edition, we share insights from our recently released International construction market survey which compiles data from 90 global markets. The report gives an in-depth analysis of construction costs – and what’s driving them – around the world.
British Columbia (BC)
BC's re-opening plan has been successful thus far in controlling the spread of the virus, as well as boosting economic activity, with the majority of restrictions lifted as of 1 July 2021. The province of BC released an ambitious capital spending budget for 2021 with new investments in health and mental health, business support, affordable housing and childcare, along with job creating community infrastructure.
During the last quarter, Alberta went through another period of full health restriction lockdowns and then came back out of it, with nearly all health restrictions eased in the province on July 1. The price of natural gas has increased over 60 percent during the most recent quarter and has more than doubled year-over-year. Crude oil prices also rallied in the last quarter reaching their highest value in over a year in early July.
The construction industry was one of the few in Ontario that saw year-over-year growth with 0.3 percent compared to 2019. Construction cost escalation continues to be an issue within the Ontario construction market with particular attention on commodity prices of lumber, steel and copper. Despite the recent 60 percent drop in lumber prices from their record high in May 2021, lumber futures have recently posted the biggest percentage gain (7.7 percent) in more than a year based on concern that wildfires in western Canada will reduce supply and spur more curtailments at sawmills.
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For all the analysis and insights on the Canadian construction market, download the full report, by completing this short form.