Canada’s building permits decreased by 1.2% in the latest report, marking a slight decline from the previous month’s 1.1% drop. This represents a continued downward trend in the construction sector, with a 0.1 percentage point increase in the rate of decline.
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The actual decrease of 1.2% was significantly larger than the analyst estimate of a 0.1% decline. This unexpected drop is likely to weigh on construction and real estate stocks, as it signals weaker demand in the housing market. The market impact may be short-term, driven by sentiment, but could also influence longer-term policy expectations if the trend persists.