Today’s weak statistics on building permits and the help wanted index, should make rate cuts easier says BMO Nesbitt Burns.

Building permits were well below expectations with a 4.4% fall in August, snapping a four-month winning streak, notes BMO. All of the weakness was centred in the non-residential component. Permits for residential properties, particularly for multi-unit dwellings, managed to recover recent losses a bit.

Also, the help-wanted index results were “very disappointing” says BMO, dropping five points to a reading of 148 in September, the lowest in nearly three years. “The figures do not bode well for job seekers, and point to a fourth consecutive decline in tomorrow’s September employment report.”

“Today’s economic data give the Bank of Canada more incentive to cut interest rates 50 basis points on October 23rd,” it concludes.