February building permits plunge

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.

“The magnitude of the decline is a function of the uncharacteristically robust level at which builders have been taking out permits,” said Stewart Hall, market strategist at HSBC Securities (Canada), in a note.

“Let's not get carried away in spinning this as Canada's own real-estate implosion.”

Douglas Porter, deputy chief economist at BMO Nesbitt Burns Inc., said that while the construction industry remains healthy, “the hefty retreat does support the view that housing activity will moderate in the year ahead.”