08:59 AM EST, 02/27/2025 (MT Newswires) -- Canada's survey of capital expenditures (capex) Wednesday pointed to sturdy growth in 2025 but doesn't yet reflect the confidence-draining impact of United States tariff threats, said Bank of Montreal (BMO).

Overall capital spending is pegged to rise 5.5% in 2025, up

from 4.5% in 2024, with M&E growth also running at a

sturdy 5.4%, said the bank.

At the regional level, firm-expected increases were reported

in Alberta, on the back of ongoing oil & natural gas investment.

While not near the heady levels of a decade ago (investment in Canadian O&G is running at 60% of 2014 levels), maintenance spending is ongoing, stated BMO. Ontario saw

strong intentions, led by transportation equipment -- autos and parts).

Of course, threats on the trade front, regardless of the

ultimate action can easily impact confidence and investment decisions, added the bank. Ontario manufacturing, for example, could see what would otherwise have been a solid year now get held back.