06:08 AM EDT, 09/23/2025 (MT Newswires) -- Canadian real construction spending climbed 5.9% year over year in July on a non-seasonally adjusted basis, driven by a 9.3% rise in residential building and a 5.2% increase in institutional and government projects, Bank of Montreal said.

The overall advance masked a 4.8% drop in commercial construction and a 7.1% decline in industrial spending, the bank noted.

Seasonally adjusted industrial spending has fallen every month since the trade war with the United States began in February, BMO added.

Notably, spending on factories has fallen 10.5% year-over-year NSA, while that for smaller industrial players has plunged 20.2%.

The respective figures for Ontario are 10.4% lower and 21.6% weaker amid punishing U.S. tariffs on steel and motor vehicles.

The bank doesn't expect much revival until the updated USMCA trade deal is signed, sealed and delivered.