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Non-residential building permits surged 32.5 per cent in June from May, and were up 42.4 per cent from a year earlier.
Non-residential building permits surged 32.5 per cent in June from May, and were up 42.4 per cent from a year earlier.
(Fred Lum/The Globe and Mail)

Why a business building boom may be in the works

If you’re seeking evidence that the Canadian economy is poised to evolve, as the Bank of Canada has prescribed, from one propelled by housing to one fuelled by business investment, the country’s June building permits report is a pretty good place to start.

Statistics Canada reported that the value of building permits issued in June jumped 13.5 per cent from May, extending an already strong trend in construction intentions that emerged in the second quarter. It would have been easy to dismiss the rebound in permits earlier in the spring as mere catch-up by builders after an unusually harsh winter had delayed their activities, but the fact that permits continued to grow strongly in June suggests that this is more than a temporary bounce.