Canada’s construction sector is set for modest growth in 2026, supported by public investment but constrained by high costs and trade uncertainty. Shifting tariff policies and ongoing tensions with the US are adding volatility to material prices and supply chains, complicating the outlook for developers. At the same time, weakening labour market conditions and rising inflation risks are creating a challenging economic backdrop. While infrastructure spending provides some stability, housing and productivity challenges continue to weigh on the sector’s longer-term prospects.