It’s been a long-time coming but November appears to have been a breakout month for construction intentions.
We track this by looking at building permits being issued by local governments. It is the primary signal that investors have reached the point that they are willing to pull the trigger on a new project. And November was a watershed month in Saskatchewan.
We have been watching signs that this was possible…..commodity prices were rising and that pointed to an increase in cash flows headed out way. Investors who have been watching this trend for the better part of a year have now reached the point where they feel the time is right to capitalize on improving economic prospects by moving plans from the drawing board to the field.
Illustrating this transition is the value of building permits issued in this province in November…it was up about 60% over a year earlier and 50% ahead of the previous month so almost all of the gain came in November. Only PEI had a stronger gain.
