Canada Building Permits Climb 14.9% In October
JustinCanadian building permits unexpectedly jumped in October, boosted by residential construction plans in Ontario.
The total value of building permits increased 14.9% from the month before to a seasonally adjusted 13.82 billion Canadian dollars, the equivalent of $10.03 billion, Statistics Canada said Friday.
That was much stronger than the 1.4% drop expected for the month by economists, according to TD Securities, and builds on the upwardly revised 5.9% rise in permits in September.
On a year-over-year basis, the overall value of permits issued last month was up 9.6%.
Building permits provide an early indication of construction activity in Canada and are based on a survey of 2,400 municipalities, representing 95% of the country's population. The issuance of a permit doesn't guarantee that construction is imminent.
Housing starts across Canada slumped 17% in October from a month prior on a seasonally adjusted annualized basis, rolling back a 14% increase in September, Canada Mortgage and Housing Corp. said last month. The six-month moving trend for starts was down 3.0% for the month.
Statistics Canada's data showed construction intentions in the residential sector climbed 14.6% from the previous month to C$8.56 billion, following a 6.6% rise in the value of permits the month before.
Intentions to build multifamily dwellings surged 21.3%, buoyed by the province of Ontario, and specifically the Toronto metropolitan area. Intentions for single-family homes rose a more modest 1.8%, with the gains being primarily attributed to Alberta.
Across Canada, a total of 24,300 multi-family dwellings and 4,100 single-family homes were authorized in October, marking a 13.6% increase from the previous month. Year-to-date, the average number of multi-family dwellings authorized stood at 21,500 a month, up from 19,100 during the same period last year.
Permits for nonresidential buildings were also strongly higher for the month, rising 15.4% to C$5.25 billion, the data agency said. That included a rise in permits for commercial and institutional buildings, more than making up for a dip in industrial plans.
