Non-residential capital and repair expenditures, 2024 (revised), 2025 (preliminary) and 2026 (intentions)

Released: 2026-02-25

Capital spending by businesses, governments and institutions is expected to increase by $14.4 billion (+3.7%) in 2026, at a slower pace than in 2025 (+$17.4 billion; +4.7%). An anticipated decrease in machinery and equipment additions (-$732.1 million; -0.6%) in 2026 is expected to be more than offset by growth in non-residential buildings and structures (+$15.2 billion; +5.9%).

Investment intentions varied greatly by sector, with 11 sectors anticipating cutbacks in capital outlays totalling $5.0 billion compared with 9 anticipating growth totalling $19.4 billion.

Increases in total capital expenditures on non-residential structures and machinery and equipment are expected in seven provinces and two territories. The Northwest Territories (+14.4%) is expected to have the strongest growth, followed by Yukon (+13.5%) and Ontario (+7.0%). If intentions are realized, Nunavut (-20.4%) would see the largest decline after strong growth in 2025 (+29.2%) but would remain above historical levels.

Chart 1 
Capital spending on non-residential tangible assets, by industrial sector

Investments by private sector businesses rebound slightly in 2026 after reining in expenditures in 2025

Total tangible capital investments in the mining, quarrying, and oil and gas extraction sector are expected to reach $65.3 billion (+6.8%) in 2026. This follows a decrease in 2025 (-3.1%), as oil and gas producers reduced capital outlays compared with the previous year. While the completion of major projects contributed to the decrease in capital spending for the sector in 2025, market consolidation in the oil and gas subsector as well as reduced capital plans were also factors. Growth is expected for 2026 in both the oil and gas extraction (+3.7%) and in the mining and quarrying (+7.3%) subsectors. An anticipated increase of one-fifth (+20.0%) in capital investments in gold mining stands out, as companies look to benefit from the sharp increase in gold prices.

Capital investments in the transportation and warehousing sector are expected to top $61.0 billion in 2026, reaching more than double the size of annual investments prior to 2018. The anticipated increase in this sector from 2025 to 2026 should be the largest among industrial sectors (+$5.6 billion).

Manufacturing sector investments revised downward for 2025 and are expected to decline further in 2026

Capital investments in the manufacturing sector declined by 2.6% in 2025 to $34.0 billion. The preliminary estimates collected in recent months showed a marked downward revision compared with the 2025 intentions collected one year earlier, as projects were postponed or reduced.

In 2026, an anticipated increase of $1.3 billion in capital investments in the chemical manufacturing subsector would be more than offset by the expected reductions in transportation equipment (-$1.1 billion) and primary metal manufacturing (-$400.0 million), two of the subsectors hit hardest by US tariffs.

Public sector spending continues to support growth

Governments, public institutions and government business enterprises expect to invest a total of $163.4 billion in non-residential tangible capital in 2026 (+5.1%), representing less than half of the growth rate seen in 2025 (+13.5%). The public administration sector contributed the most to spending in 2025 (+$8.2 billion; +17.3%), and intentions for 2026 (+$2.7 billion; +4.9%) show a further increase.

In the utilities sector, capital expenditures are expected to increase $4.5 billion in 2026 (+9.7%), as major projects to improve the reliability of electric power grids and meet the forecasted increase in electricity demand are underway or planned.

Capital expenditures on Canadian infrastructure increase by 3.8% in 2024

Total capital spending on infrastructure assets increased by 3.8% to $141.0 billion in 2024. The completion of major projects in the other transport function (air, rail, water and pipeline transportation) contributed to a $9.0 billion drop in capital outlays and to the overall decrease in infrastructure investments in Alberta and British Columbia in 2024. This offset an increase of 12.6% for all other functions combined.

Capital expenditures for public transit grew by more than one-third (+36.3%) to $17.1 billion in 2024, the largest year-over-year growth by function. Ontario (+$3.1 billion) and British Columbia (+$1.1 billion) led the increase, with major projects being underway in both provinces.

Meanwhile, investments for electricity rose by $2.3 billion (+9.2%) in 2024, with Quebec (+$1.5 billion; +33.7%), Ontario (+$825.4 million; +10.1%) and Saskatchewan (+$280.5 million; +28.6%) leading the growth.

Chart 2 
Capital expenditures, infrastructure assets, by function

Contact information

For more information, or to enquire about the concepts, methods or data quality of this release, contact us (toll-free 1-800-263-1136; 514-283-8300; infostats@statcan.gc.ca) or Media Relations (statcan.mediahotline-ligneinfomedias.statcan@statcan.gc.ca).