Canada Building Permits Fall 4.1% in December

By Paul Vieira

OTTAWA--Canadian building permits issued by municipalities fell in December as a solid gain in demand to construct single-family homes, reaching record territory, was offset as weakness in multifamily units and the nonresidential category.

The total value of building permits in December declined 4.1% from the previous month to a seasonally adjusted 9.08 billion Canadian dollars, or the equivalent of US$7.11 billion, Statistics Canada said Thursday. Expectations were for a 5% decline, according to economists at BMO Capital Markets.

The previous month's data were slightly revised to show building permits increased 12.5% in November, versus the previous estimate of a 12.9% jump.

On a year-over-year basis, the overall value of permits issued advanced 1.7%.

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.

Statistics Canada said the value of permits to build single-family detached homes jumped 7% in the month to a record C$3.05 billion. That was offset by a 7.2% drop in permits for multifamily units, and a nearly 11% decline in nonresidential edifices.

The total value of building permits declined 2.3% in 2020, despite a rebound in the second half of the year. Statistics Canada said this was the largest annual decrease since the recession in 2009.

Write to Paul Vieira at [e-mail]

(END) Dow Jones Newswires

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