The Canadian building permit market showed signs of recovery in October, with a modest increase led by non-residential construction. According to Statistics Canada, the total value of building permits rose by 2.3% to $11.24 billion Canadian dollars ($8.27 billion USD) on a seasonally adjusted basis.
This increase comes after a substantial 8.1% drop in permits the previous month. On a year-over-year basis, the overall value of permits issued in October was 16.1% higher, indicating positive growth in the construction industry.
Building permits are considered an early indicator of construction activity in Canada and are based on a survey of 2,400 municipalities, representing 95% of the country's population. It is important to note that the issuance of a permit does not guarantee immediate construction.
In October, the value of residential permits remained relatively unchanged compared to the previous month, with a slight increase of 0.6% to C$7.11 billion. Within the residential sector, permits for multifamily dwellings saw an increase of 1.8%, while permits for single-family homes experienced a decline of 1.3%.
Nonresidential building permits saw a notable increase of 5.3% to $4.13 billion, primarily driven by growth in the province of Ontario. The largest permit issued during the month was for the construction of a new hospital wing in Toronto.
Overall, these figures suggest a positive trend in the Canadian construction industry, particularly in the non-residential sector. As building permits continue to rise, it is expected that construction activity will also experience growth in the coming months.