TORONTO, July 31, 2020 /CNW/ - 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 BMO Blue Book, published by BMO Economics and BMO Business
Banking, combines the expertise of BMO's economists with
information on current national and provincial business conditions
provided to BMO's business bankers by local businesspeople. This
edition also features an outlook for five key sectors of the
Canadian economy: technology, agriculture, energy, manufacturing
and construction.
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," noted Mr. 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:
https://economics.bmo.com/media/pdf/7c2cc5ed-f42e-402a-bcd5-3c0ce82291aa.pdf
About BMO Financial Group
Serving customers for 200 years and counting, BMO is a highly
diversified financial services provider - the 8th largest bank, by
assets, in North America. With total assets of $987
billion as of April 30, 2020, and a team of diverse and
highly engaged employees, BMO provides a broad range of personal
and commercial banking, wealth management and investment banking
products and services to more than 12 million customers and
conducts business through three operating groups: Personal and
Commercial Banking, BMO Wealth Management and BMO Capital
Markets.
SOURCE BMO Financial Group