Canadian Economy—The economy has been particularly strong this year, with robust employment growth. The long-awaited recovery in business investment is finally upon us, supporting a recovery in the industry.
Business Outlook—Business confidence reached a two-year high this summer on the back of hefty increases in industrial capacity utilization and strong demand. Given this context, the uncertainty around the NAFTA renegotiation is not expected to deter firms from going forward with their investment plans.
Office Construction—Oversupply following the oil boom in Alberta is pushing up the office vacancy rate in Western Canada, limiting growth in that region. However, the shortage of quality office space in Toronto will help compensate for weaknesses in Alberta.