Canada July Building Permits Fall More Than Forecast
By Greg Quinn
(Bloomberg) — Canadian building permits fell more than three times faster than economists forecast for July, with losses spread from housing to government and commercial projects.
The value of permits issued by municipalities fell 11% to C$6.16 billion ($5.84 billion), from a revised record high of C$6.94 billion in June, Statistics Canada said today in Ottawa. Economists expected a 3.3% drop, according to the median of 14 estimates in a Bloomberg News survey.
Domestic spending may be tempered later this year by a “tightening of credit conditions” that stems from the U.S. subprime mortgage market collapse in August, the Bank of Canada said yesterday. The central bank kept its main interest rate at 4.5%, giving policy makers time to assess how much the global credit squeeze may slow demand for homes and exports.
Non-residential permits fell 19% to C$2.31 billion in July, Statistics Canada said. Projects for commercial buildings such as offices and warehouses plunged 29%. For institutional works such as hospitals and schools, they fell 17%. Industrial projects made up the only major category with an increase, gaining 24%, the statistics agency said.
The value of permits to build new houses or apartments decreased 6.3% to C$3.85 billion, with declines in both single-family homes and dwellings such as apartments and condominiums.
Statistics Canada revised the June change in total permits to a 0.1% increase from its earlier estimate of a 0.4% decline. The figures are seasonally adjusted.
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