According to this article in the Globe and Mail, Canadian building permits took an unexpected plunge in February. The 22.4 percent drop was more than triple economist expectations.
â€œThe magnitude of the decline is a function of the uncharacteristically robust level at which builders have been taking out permits,â€ said Stewart Hall, market strategist at HSBC Securities (Canada), in a note.
â€œLet’s not get carried away in spinning this as Canada’s own real-estate implosion.â€
Douglas Porter, deputy chief economist at BMO Nesbitt Burns Inc., said that while the construction industry remains healthy, â€œthe hefty retreat does support the view that housing activity will moderate in the year ahead.â€