May 7 (Bloomberg) -- Canadian building permits rose at their fastest pace ever in March, reflecting contractors' plans for new housing and commercial developments.

The value of permits issued by municipalities rose 27 percent to a seasonally adjusted C$6.12 billion ($5.54 billion), rebounding from a 23 percent decline a month earlier, Statistics Canada said today in Ottawa.

Canada, which sits on the largest pool of oil reserves outside the Middle East, has escaped the brunt of the U.S. housing slowdown as high global energy prices spur domestic job growth and consumer spending. Canadian home prices rose to a record in March, according to data provided by the nation's realtor association.

The data `` point to a recovery in corporate and consumer optimism,'' Gorica Djeric of Scotia Capital Inc. in Toronto said in a note to investors. ``The results are consistent with a recent slew of favorable economic reports coming out of Canada.''

The Canadian dollar traded for 90.73 U.S. cents at 4:08 p.m. in Toronto and earlier advanced to as much as 90.84 U.S. cents, an 11-month high, from 90.27 cents late Friday. The currency has risen for seven consecutive weeks for the longest rally since 2002, in part because of a series of reports that show the economy rebounding from a fourth-quarter slowdown. It

Canada's economy grew 0.4 percent in February, the statistics agency said last week, double the pace that economists had expected.

Economists expected a 5 percent increase in the value of building permits from February's initially reported 22 percent drop, according to the median of 16 estimates in a Bloomberg News survey.

Non-residential permits in March rose 30 percent to C$2.43 billion, while the value of proposed housing developments rose 26 percent to C$3.69 billion.

To contact the reporter on this story: Theophilos Argitis in Ottawa at targitis@bloomberg.net.

Last Updated: May 7, 2007 16:09 EDT