Go to the Globe and Mail homepage

Jump to main navigationJump to main content

(J.P. Moczulski)
(J.P. Moczulski)

Building permits fall in May Add to ...

The number of building permits issued by Canadian municipalities fell by 10.8 per cent in May to $6-billion, after two straight months of gains.

Analysts had expected a 2-per-cent drop, but Statistics Canada said sharp declines in both residential and non-residential building pulled the numbers lower.

More Related to this Story

"Lower construction intentions were spread across a wide variety of buildings, such as office buildings, recreational, hotels and warehouses," the agency stated in a release.

The value of residential permits fell 5.3 per cent to $3.7-billion as the number of permits for single-family homes fell.

"This is a very volatile series, and I think the drop in residential permits was a bit of a surprise," said Robert Kavcic, an economist at Bank of Montreal.

Institutional permits fell 21.6 per cent to $690-million, after three months of gains. Lower construction intentions in educational, medical buildings and welfare homes contributed to this decline.

The value of commercial permits fell 35.2 per cent to $988-million in May following a 30.7 per cent increase in April.

Permits rose in the industrial sector, however, up 47.1 per cent to $644-million, the fifth monthly increase in a row mostly because of utility buildings in Ontario and manufacturing buildings in Quebec. Industrial construction intentions rose in eight provinces.

Follow us on Twitter: @GlobeBusiness

In the know

Most popular video »

Highlights

More from The Globe and Mail

Most Popular Stories