Canadian October Building Permits Rise on Industrial Projects

Canadian building permits rose for a second month in October, with gains for industrial projects curbed by a drop in residential work.

The value of municipal permits increased 0.7 percent to C$7.53 billion ($6.59 billion), led mainly by intentions in British Columbia, Alberta and Saskatchewan, Statistics Canada said today. Economists forecast a 3.9 percent rise according to the median of five responses to a Bloomberg News survey.

Industrial projects such as buildings for utilities and manufacturers jumped 34.4 percent to C$614 million, leading a 2.4 percent rise in permits for non-residential construction to C$3.07 billion. Commercial projects including offices fell 8.1 percent to C$1.55 billion, while work on institutional buildings such as schools and hospitals rose 6.2 percent to C$909 million.

Bank of Canada Governor Stephen Poloz says the economy needs to shift from debt-fueled consumer spending to exports and business investment. The central bank on Dec. 3 kept its key interest rate at 1 percent.

Residential permits fell 0.4 percent to C$4.46 billion in October, Statistics Canada said today. Single-family housing permits were unchanged at C$2.42 billion, while multiple-unit projects such as apartments and condominiums fell 0.9 percent to C$2.04 billion.

The value of permits rose 3.8 percent in October compared with the same month a year earlier.

September permits rose 12.5 percent from the prior month, compared with an initially reported 12.7 percent, the Ottawa-based agency said today.