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OTTAWA — The Royal Institution of Chartered Surveyors (RICS) and the Canadian Institute of Quantity Surveyors (CIQS) has released its Q3 2025 Canada ��������ion Monitor, which reveals a negative tone is emerging from the industry for the first time this year.

According to a release, rising costs, tight financing conditions and weakening private sector demand are weighing on activity.

The ��������ion Sentiment Index (CSI) fell from +6 in Q2 to –3 in Q3, a shift driven by softening workloads and cautious expectations heading into 2026.

Public works and infrastructure are still areas of positivity, as they are continuing to expand at a net balance of +26 per cent, but momentum has slowed across several sub-sectors, including energy, ICT, social infrastructure and water and waste.

The private sector is painting and even more challenging picture, RICS notes.

Private residential workloads remain negative, although the rate of softening eased (from –34 per cent to –28 per cent). On the other hand, private non-residential workloads deteriorated more acutely (from –6 per cent to –21 per cent), signalling a significant drop in commercial project momentum.

Twelve-month expectations also softened. While infrastructure outlooks remain positive (+38 per cent), both private residential (–3 per cent) and private non-residential (–6 per cent) projections slipped into negative territory, the release adds.

Elevated interest rates, new tariff schedules and regulatory burdens, including code changes and municipal fees that are delaying or cancelling projects in multiple regions, were cited as factors.

“Credit availability remains tight, with little change from last quarter,” RICS reports. “While the 12-month outlook has improved modestly, expectations remain cautious as companies brace for slow demand and continued cost pressures.”

Employment expectations have also moderated sharply (from +17 per cent to +5 per cent), and profit margin forecasts turned negative (from 0 per cent to –9 per cent).

“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 in a statement.

“��������ion 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.”