Rising Value of Building Permits

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August 10, 2010

Photo by Pete Birkinshaw

Surprising news! There was a 6.5 percent rise in the value of building permits in Canada for the month of June! That indeed is a lot more than I expected, especially considering the unpleasant results from last month. In May, the value of building permits fell by 8.2 percent.

The nonresidential sector was very successful in June. Since May the value of permits in this sector has increased by 23.5 percent, to approximately $3 billion. This was mainly caused by the strong building motivation in commercial and institutional workings here in Ontario, as well as in Alberta. On the contrary, permits in the residential sector have declined since May, for the third month in a row, by 4.5 percent to $3.6 billion. Single family housing permits were the main reason for this fall.

This is certainly very nice news. I honestly believe nobody predicted such results. I did expect an increase, but around 1 or 2 percent. How about you?