By Paul Vieira
OTTAWA--Canadian building permits unexpectedly climbed in March on a sharp rise in demand to build factories and commercial space. Residential construction stalled.
The total value of building permits jumped 11.3% from the month before to a seasonally adjusted 11.80 billion Canadian dollars, or the equivalent of $8.81 billion, Statistics Canada said Wednesday. Market expectations were for a 2.2% decline, according to economists at Bank of Nova Scotia.
On a year-over-year basis, the overall value of permits issued in March fell 1%.
Building permits provide an early indication of construction activity in Canada and are based on a survey of 2,400 municipalities, representing 95% of the country's population. The issuance of a permit doesn't guarantee that construction is imminent.
Permits for nonresidential buildings surged 32% in March to a record level of C$5.18 billion, Statistics Canada said. Driving the result were plans unveiled by General Motors and a South Korean partner to construct a plant in the province of Quebec to manufacture battery components for electric vehicles.
Construction intentions in the residential sector fell 0.9% in March from the previous month, to C$6.62 billion, Statistics Canada said. Intentions to build multifamily dwellings rose 1.5%, while intentions for single-family homes declined 4.3%.
The data agency added the total value of building permits rose 4.8% in the first quarter from the previous three-month period, ending three straight quarterly declines.
Write to Paul Vieira at paul.vieira@wsj.com
(END) Dow Jones Newswires
05-10-23 0902ET
