B.C. manufacturing sales increased in January by 2.4 per cent following months of meagre gains. The uptick was a result of higher non-durable goods sales, which rose by 5.3 per cent, while durable goods sales were nearly flat for the second consecutive month. Though tariffs had yet to come into play, threats of trade disruption and higher prices had U.S. businesses pulling forward purchases.
Within durable goods, wood product sales grew by 4.7 per cent following a 0.3-per-cent decline in December. Computer and electronic product sales jumped by 18.9 per cent. Most other subcategories saw fewer sales in January. Primary metal sales fell by 7.9 per cent while transportation equipment sales dropped by seven per cent. Year-over-year, unadjusted durable goods sales increased by 7.5 per cent.
Data for most non-durable goods subsectors is suppressed for confidentiality reasons, but food manufacturing sales were elevated in January, rising by eight per cent after a 1.7-per-cent gain in December. Year-over-year, unadjusted non-durable goods sales increased by 10.3 per cent.
In Metro Vancouver, manufacturing sales increased by three per cent, with non-durable goods sales up 7.2 per cent and durable goods sales down 1.6 per cent.
Canadian building permits declined in January, reversing December gains. The total value of permits issued fell by 3.2 per cent to $12.8 billion, driven by a 3.4-per-cent ($312.7 million) drop in residential permits and a 2.7-per-cent ($113 million) decline in the non-residential sector.
In B.C., building permit issuances declined by 2.9 per cent ($63.6 million) in January. But on a year-over-year basis, the total value of permits increased by 1.5 per cent ($31.5 million) compared to January 2024. In nominal terms, permit issuances have shown modest movement, suggesting a weakening trend in real terms despite monthly fluctuations. While housing supply shortages persist, weak market conditions, elevated interest rates and challenges in the multi-family sector continued to constrain building activity.
In January, non-residential building permits in B.C. declined by 26.6 per cent ($151.5 million), following a decrease the previous month, as all subsectors continued to see reductions in permit issuances. Commercial, and institutional and governmental permits fell by 2.6 per cent ($7.0 million) and 56.1 per cent ($136.7 million), respectively, while industrial permits also decreased by 15.2 per cent ($7.9 million).
Despite declines in the non-residential sector, residential building permits in B.C. rose by 5.5 per cent to $1.6 billion, continuing the growth trend seen in December. This increase was entirely driven by multi-unit dwellings, which saw a 7.2-per-cent ($96.1 million) rise, pushing their value 21.9 per cent higher than January 2024. In contrast, single-dwelling permits fell by 3.1 per cent ($8.1 million) month to month, but remained six per cent above last year’s level.
Most census metropolitan areas experienced decreases in building permit issuances in January. In Vancouver, total permits fell by 6.5 per cent compared to December but were 1.5 per cent higher year over year. Victoria also saw a decrease, with permit issuances down 29.7 per cent from the previous month and 23.1 per cent below last year’s level. In contrast, Kelowna reported a notable increase, with permits increasing by 12.7 per cent in January. They were still 28.9 per cent below their level in January 2024.
Bryan Yu is chief economist at Central 1.
