The B.C. construction industry laced its sprinting shoes back up in November after taking a rest, producing a strong and largely unexpected rally.

Statistics Canada reported yesterday that Vancouver and Montreal led the rally that took hold right across the country with permits worth $5 billion being issued. It was the second-best monthly performance of the year behind June’s $5.4 billion.

As a result of the rebound, StatsCan is predicting a record construction year.

“The cumulative value so far for 2004 is just $252 million short of the total value of $50.8 billion for all of 2003, which was a record,” it said.

“Consequently, the value of building permits will reach a new annual peak in 2004.”

While monthly construction numbers can be notoriously fickle, the latest numbers clearly indicate an underlying strength for the industry, said Dr. Sherry Cooper, chief economist with BMO Nesbitt Burns.

“The burst of activity in November clearly shows that the buoyant construction sector is not fading yet,” she said.

The best news for B.C. was not in the housing sector, which remains very strong, but in the non-residential sector where the largely languishing sector rebounded by an astonishing 150.2 per cent over October with $229 million in permits being issued compared with $91.5 million in October due to new projects for industrial, manufacturing and institutional buildings.

The performance ensured the mini-rally in the sector was continuing. The latest numbers show the sector running ahead by 7.3 per cent from a year ago with $1.8 billion of permits being issued compared with $1.7 billion a year ago.

The B.C. housing sector remains the most vibrant with permits running ahead of last year by 35.9 per cent or $5.49 billion compared to $4.04 billion.

Over the first 10 months ,$7.3 billion in B.C. construction permits were issued compared with $5.7 billion a year ago.

© The Vancouver Province 2005