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Canada Infrastructure Report Q2 2013

BMI View: Canada''s construction sector will continue to post strong growth, with 4.1% year-on-year real growth in construction industry value anticipated in 2013. The housing market is anticipated to experience a slowdown; however, we see infrastructure and non-residential building picking up the slack. Industrial projects in the mining and hydrocarbons sectors, combined with those in social infrastructure, will support non-residential building, whilst new projects to support resource extraction and transportation will buoy infrastructure.

As anticipated, growth in 2012 came in slower than the previous year, at an estimated 3.9%, versus the 4.1% seen in 2011. However, the slowdown was not as pronounced as anticipated, owing to the resilience of the residential construction sector, despite a number of measures to slow mortgage loan growth. These measures now appear to be taking effect, although we anticipate it will result in a slowdown in new residential construction rather than an abrupt halt. Despite this market slowing, we see the overall construction sector picking up in 2013, as the infrastructure sector is revived as a result of natural resource related demands on the existing power and transport networks.

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Canada Infrastructure Report Q2 2013
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