Canada Building permits for February +9.3% vs -4.5% estimate

• Prior month 12.9% revised from 13.5 prior

Highlights:

• Total value of building permits in Canada rose by 9.3% to $11.8 billion in February. The expectation was for a decline of -4.5%
• Non-residential sector increased by 12.3% to $4.7 billion, driven by major construction permits.
• Residential sector saw a 7.4% rise to $7.1 billion.
• Ontario led the growth with a 21.7% increase, reaching $5.0 billion, with gains across all components.
• On a constant dollar basis (2017=100), building permits were up 8.5% in February, following a rise in January.

Details of non-residential permits:

• Total monthly value of non-residential building permits in Canada rose by 12.3% to $4.7 billion in February.
• Industrial component saw the largest increase, up 57.8% to $1.3 billion, driven by large projects:
  • New battery plant in Windsor, Ontario.
  • New dairy processing facility in Abbotsford, British Columbia.
  • New pea processing plant in Yorkton, Saskatchewan.
  • Expansion of an aluminum smelting facility in Saguenay, Quebec.
• Institutional component of the non-residential sector also grew, increasing 18.2% to $1.3 billion.

Details of Residential permits:

• Total monthly value of residential building permits in Canada rose 7.4% to $7.1 billion in February.
• Ontario saw the largest increase, up 14.2% to $2.8 billion, contributing significantly to both single-family and multi-family dwelling permits.
• Growth in residential construction intentions was almost evenly split:
  • Single-dwelling permits increased by 9.6%, adding $248.2 million.
  • Multi-dwelling permits grew by 6.0%, adding $239.3 million.
• Other significant contributors to residential sector growth included:
  • British Columbia: up 5.9%, adding $76.4 million.
  • Quebec: up 3.9%, adding $44.2 million.
  • Alberta: up 3.9%, adding $41.7 million.
• February saw the authorization of 16,400 new dwellings in multi-unit buildings and 4,600 new single-family dwellings across Canada.
• From March 2023 to February 2024, a total of 253,400 new units were authorized.

Much stronger but supply is needed.

This article was written by Greg Michalowski at www.forexlive.com.