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British Columbia saw a surprising 86-per-cent surge in the value of building permits issued in February, a month when the indicator of construction activity was heading rapidly down for Canada as a whole.
And while the total value of all permits increased in 17 of the 34 main Canadian metropolitan areas, Metro Vancouver reported the most significant increase — up 137 per cent, to $330.6 million from just $139.5 million in January.
The Vancouver Regional Construction Association calls February’s data “a positive sign” following a steady decline in activity since October 2008, but builders in the region aren’t ready to announce that the slump has ended.
VRCA president Keith Sashaw said in a news release Monday: “February’s permit values are promising for construction industry, and will offset the sharp declines in building activity we’ve seen in recent months.
“However, given the difficult economic conditions across the world, it is too early to tell if we are through the worst of it.”
Sashaw noted that construction in the region is coming off a seven-year boom “unlike any we have seen before,” so builders expect the industry to see less activity in 2009 than 2008.
“But,” he added, “our members are busy, and it is very encouraging to see the industry gaining strength.”
The value of B.C. residential permits rose by 78.9 per cent in February, to $331.6 million, from $174.2 million the previous month.
A different picture emerged for much of the rest of the country. The value of Canadian building permits fell 15.9 per cent to $3.7 billion in February, led by a big decline in the non-residential sector in Ontario.
Most economists had expected a national decline of between 3.5 and four per cent during the month, following a revised drop of six per cent in January.
Non-residential permits plunged 30.5 per cent to $1.6 billion in February. “This decline was due to a drop in Ontario and decreases in four other provinces,” the federal agency said.
Residential permits nationally were down 0.3 per cent to $2.1 billion.
Ian Pollick, economics strategist at TD Securities, said “this is a weak report and further suggests that the pace of building activity has come against pretty strong economic headwinds over the past few months, as growth has been under pressure.”
“And as the correction garners momentum, the pace of construction activity will likely continue to moderate in the near term.” he said.
In the non-residential sector, the value of institutional building permits fell 56.4 per cent to $363 million in February, compared with a 64.2 decline the previous month. “The decrease came mainly from construction intentions for medical buildings in Ontario and Quebec and a decline in permits for educational institutions in Ontario and Alberta,” Statistics Canada said.
Commercial permits dropped 20.4 per cent to $972 million, with the declines mainly in office and recreational intentions in Ontario. Meanwhile, industrial permits rose 14.3 per cent to $236 million –rebounding from a 50.8 per cent drop in January –with gains reported in six provinces.
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