- Capital Economics
Canada's building permits declined to the lowest level in almost a year, falling for the second consecutive month in February, led by drops in the institutional and commercial components of the non-residential sector. The value of Canadian permits issued in the month unexpectedly slid 0.9% to C$6.11-billion in February after an upwardly revised plunge of 12.3%, Statistics Canada reported, shy off economists' projections for a 5% rebound. The fall was caused by a 5.4% drop in the value of permits in the non-residential sector. The value of residential permits climbed 1.5% due to 20.7% surge in multi-family building permits. Construction plans for single-family homes, however, plummeted by 9.6%. Overall, Canadian authorities approved a total of 15,133 new homes during the reported month. Other relevant data showed Canada's housing starts dropped to 156,276 units, down from the downwardly revised 187,025 recorded in January, measured on the seasonally adjusted annual basis. At the same time, sales of existing homes climbed 1% in February, led by Toronto and Vancouver, according to the Canadian Real Estate Association.
The Canadian economy continues to soften, the OECD warned in yet another signal of how the plunge in oil prices is hitting the country. The collapse in oil prices is taking its toll on everything from jobs to government finances.
© Dukascopy Bank SA