Building permits fall in September
“Despite continued uncertainty in the global economy, Canada’s economic fundamentals remain positive, particularly with respect to interest rates, employment and immigration.
Financial Post · Nov. 4, 2011
OTTAWA — The outlook for construction activity in Canada weakened in September, as the value of building permits declined for the third straight month.
Statistics Canada said Friday that permit values fell 4.9% to $5.6 billion during the month. Economists had expected an increase of as much as 2.8%.
The federal agency also revised its estimate for August, lowering the decline that month to 10.1% from 10.4%.
“The decline nationally was mainly attributable to lower construction intentions for both the residential and non-residential sectors in British Columbia, and the non-residential sector in Alberta,” the agency said.
The value of permits increased, meanwhile, in Ontario, Manitoba, Saskatchewan and Nova Scotia.
The non-residential sector recorded a drop of 11% to $2 billion in September, the third consecutive monthly decline, with Alberta, B.C. and Ontario accounting for much of the weakness. Non-residential permits rose, however, in five provinces, led by Saskatchewan and Quebec.
Residential permit values slipped by 1% to $3.6 billion. That followed a 6% drop in August.
Six provinces posted declines in September, led by British Columbia.
In a separate report Friday, Canada Mortgage and Housing Corp. said housing starts would total 191,000 units this year and 186,750 units in 2012.
CMHC also said existing home sales will total 450,100 units in 2011 and 458,500 units next year. The average home price will be $363,900 this year and $368,200 in 2012, it said.
“Despite continued uncertainty in the global economy, Canada’s economic fundamentals remain positive, particularly with respect to interest rates, employment and immigration. These factors will continue to support Canada’s housing sector in 2012,” said CMHC deputy chief economist Mathieu Laberge.