- Beth Crosbie, President of CREA
Canadian building permits rose surprisingly by 13.5% in June to second highest level on record, amid higher construction intentions in the province of Quebec. Quebec, the second most populous of Canada's 10 provinces, posted a sharp increase in construction intentions for medical facilities as well as information technology buildings. The figure overshot economists expectations for a 2.0% month-on-month drop following the 15.4% jump recorded in May. Building permits data is a leading indicator of activity in the construction industry. The value of non-residential building permits rose by 32.5%, a third straight monthly advance and the largest since July 2013, led by the institutional and industrial components, whereas residential permits climbed slightly.
In the meantime, Canada's Ivey Purchasing Managers' Index rose at the fastest pace in three months in July, easing concerns over the country's economic outlook. In its report, the Richard Ivey School of Business said its PMI index jumped to 54.1 in July from a reading of 46.9 in the preceding month. Analysts, however, had expected the index to increase to 53.0 in July. Canada's economy is on track to expand at the second-fastest pace among the G7 countries this year, even though the outlook is slightly weaker, according to the latest International Monetary Fund forecasts. The Canadian economy will be outperformed this year among the developed nations only by the U.K., at 3.2%.
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