Intentions for non-residential capital spending in Canada in 2026 increased by $14.4 billion from 2025. However, nearly all of that gain was concentrated in just a handful of sectors, with the top four accounting for roughly $17 billion in additional investment. By contrast, 11 of 20 industries plan to reduce capital spending, with manufacturing capital spend expected to decline for a second consecutive year. As tariffs weigh on trade-exposed producers and capital-intensive service sectors, such as real estate, pull back sharply, the uneven distribution across sectors raises concerns for the broad-based productivity gains Canada needs.
For more, see related C.D. Howe Institute research on capital investment and productivity.
Note: Data are gathered from the Annual Capital and Repair Expenditures Survey. 2025 data are preliminary actuals, and 2026 data are intentions and do not include the repairs expenditures.
Source: Statistics Canada Table 34-10-0035-01.
