The Royal Institution of Chartered Surveyors (RICS) and the Canadian Institute of Quantity Surveyors (CIQS) have released the Q3 2025 Canada Construction Monitor, which revealed that industry sentiment has turned slightly negative for the first time this year.
The Construction Sentiment Index (CSI) fell from +6 in Q2 to –3 in Q3, a shift which the results indicate was driven by softening workloads and cautious expectations heading into the new year. Momentum slowed across several sub-sectors, including energy, ICT, social infrastructure, and water and waste.
Private residential workloads remain negative while private non-residential workloads deteriorated more acutely, which signals a significant drop in commercial project momentum.
Participants of the survey linked these challenges to elevated interest rates, new tariff schedules, and regulatory burdens, including code changes and municipal fees that are delaying or cancelling projects in multiple regions.
Credit availability remains tight, with little change from last quarter. While the 12-month outlook has improved, expectations remain cautious as companies brace for slow demand and continued cost pressures.
Employment expectations have also moderated sharply, and profit margin forecasts turned negative. The results indicate that these trends point to subdued confidence as the sector adjusts to economic headwinds, regulatory challenges, and shifting market demand.
“The Q3 survey reveals that the Canadian construction sector sits at a critical turning point, where industry confidence is declining despite continued strong infrastructure activity,” said CIQS chief executive, Sheila Lennon. “Construction firms are challenged by financial constraints, persistent labour shortages, and rising material costs, and while the government’s strong commitment to infrastructure spending in the Fall Budget should theoretically drive industry growth, the true test will be whether that investment is enough to overcome those challenges to deliver real, meaningful impact moving forward.”