Canada Posts the Biggest Decline in Building Permits

Canadian building permits took another big dive in April

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

• Last updated: Wednesday, May 27, 2020

The decline in April was the largest since 2008

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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ABOUT THE AUTHOR See More

Skerdian Meta

Lead Analyst

Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.