MNI BRIEF: Canadian 2025 Capital Spending Seen +5.5%
MNI (LONDON) - Canadian businesses and governments plan to raise capital investments 5.5% this year, based on a survey the federal statistics agency took from September to January and only captures some U.S. tariff threats.
Non-residential investment planned by businesses is up 5.5%, and for government it’s 5.7% higher according to the survey published Wednesday by Statistics Canada. Manufacturing-- one of the industries most at risk from a trade war-- was a leader in gains, with plans to boost investment by 16%. (See: MNI INTERVIEW: Canada Already Chilled By Trump Tariff Threat)
Central bank officials say tariff uncertainty is already hurting Canada’s economy and staff estimate investment could fall 12% in the first year of a prolonged dispute. Governor Tiff Macklem said the BOC could provide some rate cuts to support a drop in demand but also would need to ensure tariffs don’t create persistent inflation.