StatsCan Confirms Sharp Decline in Canada Building Permits

This article was last updated on April 16, 2022

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Data collected by Statistics Canada have indicated that the number of Canadian building permits issued has decreased sharply in August, when compared with last month’s record, especially the commercial projects such as retail stores and office buildings. The record shows that the value of municipal permits decreased by 21.2 percent to C$6.34 billion ($6.14 billion), following a revised 21.4 percent jump in July.

During a speech made last week, Senior Deputy Governor, Tiff Macklem, commented that The Bank of Canada is relying on a shift in demand to business investment and exports from debt-fueled consumer spending, which is a process that might take longer than expected. The overnight interest rate of central bank, kept at 1 percent since September 2010, is especially aimed to encourage borrowing and spending. Assistant chief economist at Royal Bank of Canada in Toronto, Paul Ferley, stated that “it’s a little bit worrying to see the weakness on the non-residential side, though it did show a strong gain last month.” He added that “it’s not indicating non-residential is poised to start leading growth.”

In light of the latest developments, Canadian dollar was seen to have declined by 0.3 percent to C$1.0322 per U.S. dollar at 9:43 a.m. in Toronto, as one Canadian dollar started buying 96.88 U.S. cents. The agency further revealed that the number of non-residential construction permits decreased by 37.9 percent to C$2.43 billion, when compared with July record of C$3.91 billion, while commercial projects dropped by 45.8 percent to C$1.40 billion.