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OTTAWA (Reuters) - Two reports released on Thursday showed signs of a rebound in the Canadian economy after months of weak readings.
The Ivey Purchasing Managers Index report showed company purchasing activity expanded in September at a rate that was a bit below expectations but still at a faster pace than in August.
Meanwhile, the value of Canadian building permits rose 8.3 percent from July to the second-highest level on record on a surge of activity in both residential and nonresidential markets, Statistics Canada said.
The reports had little impact on the Canadian dollar, which barely budged, but they are expected to provide a bit of balance to the recent build-up of negative sentiment toward the currency.
"After some weakness through the summer months, permits have posted a solid rebound, and today's report bodes well for construction activity in the near term," Carolyn Kwan, markets economist at Scotia Capital, wrote in a note.
"Our expectation is that economic activity will bounce back from two consecutive quarters of below-trend growth, and this view is supported by today's permits report."
Analysts, on average, had forecast the issue of building permits would climb 1.0 percent in August.
Nonresidential permits provided most of the strength, rising 14.2 percent from July but residential permits also jumped by 5.0 percent.
A healthy job market, a dynamic economy in western Canada, solid consumer confidence and advantageous mortgage rates were credited for sustaining the housing market.
Ontario and British Columbia issued the most housing permits. Oil-rich Alberta posted a 4.4 percent decline. |
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