Today's Report (12/01/2021)

The total value of building permits increased 1.3% to $10.3 billion in October, led by gains in British Columbia (+15.0%) and Ontario (+4.5%). Construction intentions in the non-residential sector were up 4.2%, while the residential sector edged down 0.1%. On a constant dollar basis (2012=100), building permits increased 0.7% to $7.0 billion.

What It Is?

Measures the change in the number of new building permits issued by the Govt.

What Are The Fundamental Effects?

It is a key indicator of demand in the housing market. By tracking the issuance of permits, we can get a sense of how much and where future construction will take place.

How Does It Affect The Markets?

CURRENCY - A higher than expected reading should be taken as bullish for the Canadian Dollar, while a lower than expected reading should be taken as bearish for the Canadian Dollar.

STOCKS - A vibrant housing market is often seen as positive for shareholders If the housing markets start to surge when the rest of the economy is at full speed.

BONDS - A pick-up in permit issuance is often bad news for fixed income markets because a healthy housing market depicts a robust economy and inflation pressures are likely to accelerate.