The results of the Q2 2025 RICS-CIQS Canada Construction Monitor continue pointing to a cautious backdrop in the face of increased trade tariffs set by the U.S.
According to the results, the latest feedback is “somewhat more stable” than in the previous quarter, despite the mood remaining “less upbeat” than during most of last year.
In the second quarter, the headline Construction Sentiment Index (CSI) posted a reading of +6, marking a small improvement in comparison to the figure of -3 returned in the first quarter. Tariff induced uncertainty is still evident, with the latest reading more subdued than the average score of +21 seen over the past twelve months.
Over the last survey period, respondents noted a strong rebound across infrastructure. A net balance of +40 per cent of contributors saw a pick-up in workloads during the second quarter, which was the strongest reading going back to early 2023.
The ‘social’ infrastructure sub-sector recorded within this was the most notable uplift, with water and waste, and transport, seeing an improvement. Agribusiness was the only infrastructure category in which workloads did not reportedly rise during the second quarter.
The indicator tracking private residential activity slid deeper into negative territory, registering a net balance of -34 per cent. This is the weakest reading across the sector since the survey was formed in late 2019. With respect to private non-residential/commercial development activity, the latest net balance of -6 per cent is less than -18 last time.
The infrastructure sector also continues to stand out as displaying the strongest growth prospects over the year ahead. Respondents upgraded their projections in the second quarter, with the latest net balance of 56 per cent the most upbeat since 2022.
In terms of the industry employment outlook, a net balance of +17 per cent of contributors at the national level predict headcounts rising over the next twelve months, up from a reading of +6 per cent beforehand. Respondents are now of the view that profit margins will see little change over the course of the next twelve months.
“Despite growing uncertainty in the residential and non-residential sectors and continued concern regarding the US tariffs, rising material costs, and continued skills shortages, infrastructure workloads saw the strongest pickup since early 2023,” said Sheila Lennon, CAE, chief executive officer of CIQS. “This infrastructure growth offers significant opportunities for quantity surveyors, as they play a critical role in forecasting costs and ensuring project efficiency to manage risk and maintain financial stability of projects.”