- Carolyn Wilkins, Bank of Canada Senior Deputy Governor
The value of Canadian building permits enjoyed the biggest jump in six months in March, driven by an increase in construction intentions for multi-family homes in Ontario and British Columbia, according to Statistics Canada. The value of municipal permits soared 11.6% to C$6.87 billion, after two consecutive months of declines, and overshooting economists' expectations for a 2% rise. Meanwhile, residential permits advanced 6.6% measured on a monthly basis. The major upside contributor was multi-family dwellings, which include apartments and apartment condominiums. Permits for industrial buildings increased by 5.5% to C$428 million, while for commercial projects such as offices they surged 11.4% to C$1.36 billion. The total for overall non-residential construction, which also includes the institutional category, skyrocketed 22.1% to C$2.45 billion. In addition to that, Canada's housing starts surprised to the upside, with the seasonally adjusted annual rate climbing to 189,708 units. Moreover, sales of existing homes increased 4.1% last month.
Demand for homes has been supported by the lowest mortgage rates in decades. Bank of Canada Governor Stephen Poloz said the economy needs a shift from debt-driven consumer spending to exports and private business investment.
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