Value takes surprise $6B leap with major growth in Alberta, Ontario
Province
The value of building permits jumped far above expectations in October, led by both single-family and non-residential units, amid growing signs in Canada of an economic recovery.
Statistics Canada reported Monday that permits were up 18 percent during the month to $6.1 billion, with values increasing in six provinces, led by Alberta and Ontario.
Most economists had expected permits to rise by just one per cent in October.
Residential permits rose 3.8 per cent to $3.4 billion, the third consecutive monthly increase, Statistics Canada said. “Ontario and Quebec accounted for much of the growth seen at the national level,” it said. In the non-residential sector, permits jumped42.4percent to $2.7 billion in October, after falling 9.2 per cent the previous month.
Within that sector, industrial intentions doubled in value to $709 million, fuelled by spikes in permits in Alberta, Ontario and Quebec, the federal agency said.
“After four monthly consecutive declines, the value of institutional building permits increased 50.9 per cent to $904 million,” it said. “The gain was largely attributable to educational institution projects in Alberta, Saskatchewan, Quebec and B.C. Ontario had an increase in the value of permits for medical buildings.”
Commercialpermitswereup15.3 percentfromSeptemberto$1.1billion. The bulk of the construction is for office buildings and retail stores in Ontario, and warehouses in Saskatchewan, the agency said.
Meanwhile, applications to build single-family units rose for an eighth straight month, jumping 10.1 per cent to $2.4 billion in October, with building plans rising in every province except Nova Scotia and Prince Edward Island.
At the same time, multi-family permits fell 8.2 per cent to $1 billion in October, following a 34.3 per cent rise the previous month. “B. C., Alberta and Nova Scotia had the largest declines, while Ontario posted the biggest gain in construction intentions for multi-family dwellings,” Statistics Canada said.
The Canadian economy eked out 0.4 per cent annualized economic growth in the third quarter, marking the official end of recession. In November, the economy generated 79,100 jobs, reversing October’s loss of 43,200 jobs.
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