-Bank of Canada
The number of building permits issued in Canada declined more-than-expected last month in January. The value of building permits issued in January plummeted by 12.9% to C$6.13 billion, led by sharply lower construction intentions for non-residential buildings, according to Statistics Canada. Residential building permits fell 7.0% as plans for multi-family dwelling, including condominiums and apartments, plummeted 21%, marking the fourth consecutive decline. Permits for single family homes, however, increased 3.5%. Non-residential permits also plummeted 22.8% as construction plans in the commercial, industrial and institutional sectors all declined.
On top of that, Canada posted larger than expected trade deficit in January, which ballooned to the second biggest level in records dating to 1925 as exports were undermined by plummeting oil prices. Canada's trade shortfall widened to 2.45 billion Canadian dollars, while December's deficit was revised to C$1.22 billion, almost double the originally estimated figure, according to Statistics Canada. Canada's trade surplus with its key trade partner the US, which accounts for 75% of Canadian exports, almost halved to C$1.2 billion, the lowest level since 1992. Canada's exports dropped 2.8% and imports were flat.
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