The decline in April was the largest since 2008

Canada Posts the Biggest Decline in Building Permits

Posted Wednesday, May 27, 2020 by
Skerdian Meta • 1 min read

The building sector was holding up well in Canada during last year, despite the weakening global economy due to the US-China trade war. But, the building permits turned negative in March, posting a 13.2% decline that month, which was revised lower to -13.4%, as Canada went into lockdown.

The decline increased in April, as the lockdown continued and it will have a negative effect on the construction activity for the coming months in Canada. Below is the report:

Canadian Building Permits Report for April 2020

  • April building permits -17.1% vs -13.2% prior
  • Largest decline since October 2008
  • Permits were at -13.2% in March (revised to -13.4%)
  • Single family permits -35.9%
  • Multi-family +4.8%
  • Non-residential -21.5%

There is no big surprise here but the open question is how much of that demand for construction is pent-up to be released over time, and how much is gone forever. Anyway, the CAD didn’t mind much and USD/CAD is still bearish today, as crude Oil remains bullish.

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