Release Explanation: The number of residential and non-residential Building Permits issued in a month. The yearly change is also given. Act as a leading indicator on the Construction Market sentiment because obtaining a permit is among the first steps in constructing a new building. The report will affect future sales of new construction and then eventually Retail Sales, GDP and Durable Goods as new additions are fitted out with fixtures and fittings. A currency will eventually be affected by these numbers as they are the first phase in the home construction process.
Trade Desk Thoughts: According to Statistics Canada, the total value of building permits decreased 15.7% to $5.4 billion in October as construction intentions fell in both the residential and non-residential sectors.
The value of non-residential permits declined 23.9% to $2.4 billion following a 41.0% increase in September. October's decrease occurred mainly as a result of a decline in non-residential components in Ontario, Saskatchewan and Alberta.
Municipalities issued $3.0 billion in permits for the residential sector in October, down 7.8%. It was the third consecutive monthly drop, and was a result of declines in both single and multiple dwellings. Provincially, British Columbia registered the largest decrease, as a result of declines in the value of multi-family permits.
On a year-to-date (January to October) basis, the total value of building permits issued by municipalities reached $60.9 billion, down 2.3% from the same period in 2007. The residential sector decreased by 6.5%, while the non-residential sector was 4.2% higher.
Forex Technical Reaction: Crude was recently trading 2.4% lower and USD/CAD was rising, but the pair declined slightly after the report was released.