Statistics Canada says municipalities issued $6.8-billion worth of building permits in July, down 2.3 per cent from June.
The agency says the decline was driven by lower values of permits for both residential and non-residential buildings, particularly in Ontario.
In the residential sector, the value of permits decreased 2.4 per cent to $4.3-billion, following two consecutive monthly increases.
In the non-residential sector, the value of permits fell 2.1 per cent to $2.5-billion after a 9.0 per cent drop in June.
The value of permits for multi-family dwellings fell 4.3 per cent to $1.9-billion, after two consecutive monthly increases.
Permits for single-family dwellings totalled $2.5-billion, down 0.9 per cent from June and a shift from two consecutive monthly increases.