Construction hits a downturn after strong 2007

Avatar photo

OTTAWA, Ont. — The latest statistics on building permits may raise concern for truckers in the construction industry.

Construction was one of the bright spots in the Canadian economy which grew by a less than-exciting 2.7% in 2007. Profits in construction rose 26% last year, compared to 9.2% for the Canadian economy overall.

However, the latest data from Statistics Canada reveals that the value of building permits in January fell below the $6-billion mark for the first time since April 2007. An increase in the non-residential sector was insufficient to compensate for fewer construction intentions in the residential area.

Municipalities issued $5.9 billion worth of building permits, down 2.9% from the December 2007 value of $6.0 billion. This was a third consecutive monthly decline.

“Despite the recent declines, building sites should remain busy in the first part of 2008 since construction intentions were strong in 2007. Building permits are a leading indicator for construction activity,” Statistics Canada noted in its report.

In the residential sector, the value of building permits dropped by 13.9% to $3.3 billion. This was fuelled by a 26.9% drop in multi-family housing. Intentions also decreased in the single-family component by -5.4%

Avatar photo

Truck News is Canada's leading trucking newspaper - news and information for trucking companies, owner/operators, truck drivers and logistics professionals working in the Canadian trucking industry.

Have your say

This is a moderated forum. Comments will no longer be published unless they are accompanied by a first and last name and a verifiable email address. (Today's Trucking will not publish or share the email address.) Profane language and content deemed to be libelous, racist, or threatening in nature will not be published under any circumstances.