According to a recent Statistics Canada report, building permit values dropped 17.9 per cent, to approximately $6.2 billion in November, when compared to October. The decline follows a 15.9-per-cent increase in October. The decrease was largely fuelled by a drop in construction intentions in the non-residential and residential sectors in Ontario.
Non-residential construction intentions dropped 30.6 per cent to $2.4 billion, following a 53.6-per-cent increase in the previous month.
Building permit values in the industrial component dropped 60.7 per cent to $427 million in November after more than tripling in October and surpassing the $1-billion mark.
The decline in the component was mainly due to lower construction intentions for manufacturing plants, transportation-related buildings and utilities buildings.
Institutional component building permit values fell 49.1 per cent to $515 million in November, fuelled largely by decreased construction intentions for medical facilities in Ontario and educational institutions in Ontario, Saskatchewan, Manitoba and New Brunswick. The decline follows a 74.8-per-cent gain in October.
Construction intentions for the commercial component experienced a 5.9-per-cent increase to $1.5 billion in November, after increasing 3.4 per cent in October. The gains were attributed to increased permit values in a variety of buildings, including office buildings, retail and wholesale outlets, hotels and restaurants, recreational facilities, warehouses and retail complexes.
Overall building permit values were down in 19 of Canada’s 34 census metropolitan areas, with the largest drops occurring in Toronto, Hamilton and Quebec. The largest increases in construction intentions took place in Winnipeg, Vancouver and Kitchener-Cambridge-Waterloo, Ont.
Building permit values in the residential sector decreased 6.8 per cent to $3.8 billion in November, following a 4.4-per-cent decline in October.
To view the full report, click here.
Source: Statistics Canada.