Positive Momentum Hurt by Negative Expectations: Canada’s Two-Year Business Investment Outlook

Document Highlights

Real non-residential business investment will grow by 6.2 per cent this year and by 3.3 per cent in 2023.

Much of the growth in investment this year will come from the energy sector as other industries continue to play catch-up.

Higher capacity utilization over the past few quarters will put pressure on companies to expand their productive capabilities.

Expectations around interest rates, supply chains, and labour shortages will hurt overall capital spending.

Construction prices will remain hot due to elevated commodity prices, deterring investment in new buildings.