Canada Building Permits Fall 3.9% in November

By Robb M. Stewart

OTTAWA--The value of Canadian building permits retreated in November, with declines across almost all building types.

The total value of building permits fell 3.9% from the month before to a seasonally adjusted 10.87 billion Canadian dollars, the equivalent of $8.15 billion, Statistics Canada said Tuesday.

The pull back was sharper than the 1.4% drop the market was expecting, according to economists at TD Securities, and follows an upwardly revised 3.0% rise in permits in October.

Sharp falls in residential permits issued in British Columbia and Quebec, driven by a fall in intentions for multi-unit construction, more than offset residential gains in other parts of the country, Statistics Canada said. There also was a fall in the monthly value of non-residential building permits, led by weakness in the commercial component.

On a year-over-year basis, the overall value of permits issued in November was 4.2% lower.

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.

Construction intentions in the residential sector declined 2.8% from the prior month to C$6.96 billion, the data agency said. Intentions to build multifamily dwellings was down 4.7%, while intentions for single-family homes edged up 0.3%.

Permits for nonresidential buildings were 5.8% lower at $3.91 billion, the agency said.

Write to Robb M. Stewart at [e-mail]

(END) Dow Jones Newswires

01-09-24 0848ET