‘Too early to say’ if sector is out of the woods
Province
The value of residential building permits jumped 13.7 per cent across B.C. in June. The leap is encouraging, but the market is likely to remain volatile, experts say. RIC ERNST — THE PROVINCE
B.C. posted Canada‘s largest jump in the value of building permits in June, but a local player warns it’s too early to say the construction sector has turned the corner.
The value of permits issued across the province surged by $146.8 million, or 30.3 per cent, between May and June, Statistics Canada said yesterday.
The value of non-residential permits in B.C. surged by 49.7 per cent, while residential jumped 13.7 per cent, StatsCan said.
Total building permit values in the Lower Mainland-Southwest region climbed two per cent to $305.8 million between May and June, fuelled by a 29-per-cent rise in residential permits. Non-residential permits fell by 21 per cent during this period.
Keith Sashaw, president of the Vancouver Regional Construction Association, saw hopeful signs in the latest numbers but cautioned that the market will likely remain volatile.
“The June permit values are encouraging but it is too early to tell if the worst is over for the construction industry,” Sashaw said.
Year-to-date permit values in the Lower Mainland-Southwest region are down 57 per cent from the same period last year, led by a 63-per-cent decline in residential permits.
Nationally, building permits rose unexpectedly in June, climbing one per cent to $5.2 billion. Economists had expected permits to decline by about three per cent in June.
Among major Canadian centres, the biggest gains came in Montreal (up 36.9 per cent) and Hamilton (up 289.3 per cent).
The value of permits declined in Calgary by 33 per cent.
“Since the beginning of 2009, the value of permits has fallen by 26.2 per cent compared with the same period a year earlier,” the agency said.
“The institutional component of the non-residential sector was the only component that posted a gain compared with the first six months of 2008.”
The value of residential permits rose 0.5 per cent to $2.7 billion in June –the fourth straight monthly increase in the sector — led by Quebec.
Non-residential-sector permits increased 1.5 per cent to $2.5 billion during the month.
Charmaine Buskas, senior economics strategist at TD Securities, said the “the continued strength of the building permit data bodes well for the Canadian construction market.”
“It is clear that domestic considerations will remain a key driver for the economy, as the external sector remains under pressure,” she said.
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