Canadian building permits jumped 18% in October, led by work on single-family homes and non- residential projects, another sign that the country’s economy is recovering from a recession.
The total value of permits issued by municipalities rose to $6.12 billion, Statistics Canada said today in Ottawa, the highest total since September 2008 before a recession began. Economists had predicted a 1% gain based on the median of 13 estimates taken by Bloomberg News.
Statistics Canada reported last week that the economy grew in the third quarter for the first time in a year, and added five times as many jobs in November as economists predicted.
Prime Minister Stephen Harper has brought in tax credits for first-time home purchases and renovations, and the central bank has promised to aid demand by keeping its key interest rate at a record low through next June if the inflation outlook doesn’t change.
Permits for single-family dwellings increased 10% to $2.4 billion, the eighth straight gain. Multiple-family projects such as apartment buildings fell 8.2% to $1 billion in October after a 34% jump the previous month. Residential permits in total rose 3.8% to $3.4 billion, the highest since February 2008.
Permits for non-residential construction increased 42% to $2.72 billion, with gains in all three major categories, Statistics Canada said.
The agency also doubled its estimate of September’s gain to 3.2% from the 1.6% originally reported.
