MNI DATA IMPACT: Record High Canada Non-Residential Permits>

By Greg Quinn 

     OTTAWA (MNI) - Canadian non-residential building permits reached a 

record high in December, a sign of resilient business confidence as the 

BOC weighs whether to cut interest rates.

     Work permits were issued for CAD3.63 billion of non-residential 

projects, up 8.3% from November, Statistics Canada said Monday from 

Ottawa. 

     Commercial projects such as office space climbed 20% to CAD2.04 

billion, boosted by a major project in Montreal. Institutional projects 

advanced 11% to CAD1 billion, the highest in more than two years, on a 

Toronto health facility. Industrial permits fell 21% to CAD583 million, 

with StatsCan saying that followed a strong gain the month before. 

     Business investment has been one of the weakest parts of Canada's 

economy, which is expected to have nearly stalled in the fourth quarter 

on slower consumer spending and exporters hurting from global trade 

tensions. BOC Governor Stephen Poloz said last month the door is open to 

a rate cut if a persistent slowdown emerges.

     Total building permits rose 7.4% in December to CAD8.67 billion, 

faster than the MNI median of 2.3%.

     Residential construction also showed a trend of consumers backing 

away from higher-priced housing. Concern about a debt boom has made it 

harder for the BOC to cut rates because of concern about financial 

stability. 

     Housing construction permits climbed 6.8% in December, but with all 

of the increase coming from a 16% rise in lower-cost multiple-unit 

housing. Single family permits declined 3.2%. That has left the value of 

single housing further behind multiples, now by a margin of CAD2.2 

billion to CAD2.9 billion.

     For all of last year, the value of single family permits fell to 

the lowest since 2009, with a 4.9% fall to CAD26.5 billion. Multiples 

rose 1.5% to a record CAD35.5 billion. 

--MNI Ottawa Bureau; tel: +1-613-314-9647; email: 

greg.quinn@marketnews.com 

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