Building Permits Surge in Canada

Ottawa, Ontario, December 6, 2006--The value of Canadian building permits unexpectedly surged 6.1 percent in October from September, reaching their second highest level on record, as builders planned more multifamily houses and commercial units, Statistics Canada said on Wednesday. Analysts had expected activity in the construction sector to slow heading into winter, and on average they had forecast a 1.5 percent decline in the month. Instead, permits climbed to C$6.03 billion ($5.29 billion), surpassing the C$6-billion mark for the first time since December 2005. "These results point to a busy winter on building sites as building permits are a leading indicator for construction activity," Statscan said. Residential permits jumped 4.3 percent to C$3.62 billion as intentions for multifamily dwellings jumped to their second highest level on record thanks to the booming economy in oil-rich Alberta. Nonresidential permits soared 9.1 percent to a record C$2.41 billion due to a sharp rise in commercial permits, especially in Alberta and British Columbia.