Although the comparable housing starts data are released a month before, building permits provide information on construction intentions for the housing market. A downward trend month-on-month in the value of building permits may reflect falling prices in the housing market and/or a fall in the number of permits; either way such a trend would indicate a possible future slowdown in housing construction activity. The year-on-year trend is important to compare the current state of the construction market to the past years.
Similarly, the trend in non-residential permits will indicate the health of the rest of the construction sector, where a declining trend or weaker year-on-year growth would indicate a looming slowdown.
Breakdowns along provincial and municipal lines provide useful indicators on the health of the construction sector around the country. This may indicate either broad strength or that permit growth was mainly led by a few localities.
