Square Footage now Estimated to be 76.0 million in 2008 versus 90.5 in 2007
The accompanying tables set out CanaData’s latest square footage forecasts for ICI construction in Canada, by region, out to 2010. ICI stands for industrial, commercial and institutional. These are the three major non-residential building construction categories.

CanaData’s square-footage construction estimates for 2008 and forecasts for 2009 have been adjusted downward to factor in two circumstances: (1) actual starts so far this year have been weaker than expected, in the commercial category in particular; and (2) uncertainty as a result of the huge financial-sector bailout proposed by the U.S. Treasury Department.

The immediate impact of the government bailout has been a shoring up of the most vulnerable remaining investment banks, at least until they find “white knights” to take them under their wings. This will probably come in the form of commercial banks that have large depositor bases.

The longer-term impacts are far more open to speculation. Canada’s financial sector remains in much better shape than south of the border. But there are always significant implications for Canada arising from changes in U.S. consumer spending, the value of the greenback and interest rate action by the Federal Reserve.

The dust will have to settle a bit before a proper assessment can be made of where the U.S. economy heads from here. But wherever it’s going, Canada’s proximity and co-dependence mean that this country will be taken along for the ride as well. 

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