Canada Building Permits Unexpectedly Fall

The value of building permits in Canada fell 1.5 percent from a year earlier to CAD 8.3 billion in October 2019, following a downwardly revised 5.9 percent decline in the previous month and missing market forecasts of a 2.9 percent raise. The value of residential permits dropped below CAD 5 billion for the first time since March 2019, as both single (-2.9 percent) and multi-family (-3.4%) dwellings went down. Additionally, the value of commercial permits decreased 5.3 percent to CAD 2 billion, as gains in eight provinces, led by Quebec (+ CAD 161 million), was not enough to offset a decline in British Columbia (CAD -317 million); and industrial permits fell 1.1 percent to CAD 604 million. On the other hand, institutional permits jumped 24.9 percent to CAD 765 million, driven by gains in Manitoba largely due to an expansion at Red River College (+CAD 79 million, its highest level since April 2003), and Ontario (+CAD 72 million).