06:06 AM EST, 11/20/2025 (MT Newswires) -- Canada's construction sector continues to soften, with real investment down in both residential -- down 1.9% -- and non-residential -- 0.2% lower -- segments in the six months to September, said Bank of Montreal (BMO).

On the housing side, a glut of existing inventory -- especially in multis -- and ongoing affordability challenges continue to act as headwinds, noted the bank.

Meantime, non-residential units are feeling the weight of the United States tariff uncertainty on the industrial segment, while commercial and institutional investment is holding up, stated BMO.

Looking ahead, past rate cuts should continue to provide a cushion for construction activity, added the bank. On the housing side, it's only a matter of time for the market to absorb excess supply.

However, it will take a "meaningful" reduction in trade uncertainty for the industrial segment to truly recover, according to BMO.