Construction activity has held up relatively well during the pandemic, as – other than a brief shutdown in parts of Canada in April – it has largely been able to continue operating near capacity, according to an outlook for the sector in the BMO Blue Book.
The report notes that residential construction will remain solid in the near term, with housing starts expected to rebound to 215,000 units in 2021, from 195,000 in 2020.
“The average of the two years marks only a slight downshift from home-building activity in recent years,” said Doug Porter, chief economist, BMO Financial Group.
Non-residential construction should remain mixed. “Construction in the oil sector will likely remain quite subdued given the oil price backdrop, and office and retail construction will also be weak,” said Porter. “However, public-sector infrastructure investment should remain solid, particularly if federal and provincial budgets focus on stimulus post-COVID. Some provinces have already hinted at pulling forward capital spending programs to support economic growth.”
The BMO Blue Book can be downloaded at: bit.ly/bmo_blue_pdf. 