"Lower commodity prices weigh on the outlook through reduced disposable income and a decline in resource-related investment. The latter has been particularly sharply felt in Canada, where growth is now projected to be about 1% in 2015."
- IMF
The number of construction plans in Canada decreased in August, with the unexpected drop in the total value of building permits. As was reported by the Statistics Canada, the number of permits fell for the first time in three months in August, with both residential and non-residential construction intentions declining. At the same time, according to the report, builders in Canada took out C$7.5 billion worth of permits during the given period, down by 3.7% from July. Meanwhile, the prior month's drop of 0.6% was revised to a 0.7% gain. The reading missed market expectations of a 0.3% advance. Vancouver appeared to be a leading city in a decline of permits, as those decreased by 26.1% on a monthly basis in August. However, the city's total value of permits remained 52.3% greater than in the same month a year ago.
Meanwhile, Canada's most populated province of Ontario grabbed the biggest gains both in residential and non-residential sectors, as Toronto, country's biggest city, showed a 50.3% rise in permits compared to the preceding month, while on a yearly basis permits increased by 146% in August. In the meantime, Canadian economists have been keeping a close eye on the domestic housing situation, monitoring for signs of possible overheating, especially in light of rising household debt levels.
© Dukascopy Bank SA