According to a recent Statistics Canada report, total building permit values dropped 13.2 per cent to $6.5 billion in September, after experiencing a 9.5-per cent increase in August.
Non-residential sector building permit values fell 30.8 per cent to $2.2 billion in September, following a 27.7 per cent in construction intentions in the previous month.
The decline was fuelled largely by lower construction intentions in Ontario and Quebec. Four provinces experienced gains in building permit values in the sector in September, led by British Columbia and Nova Scotia.
The institutional component experienced a 44.5-per cent decline to $586 million after more than doubling the previous month. A decline in building permit values for medical facilities and educational institutions in Ontario, and government buildings in Quebec, largely contributed to the decline. Increases in construction intentions in the component were experienced in Saskatchewan, Nova Scotia and Alberta.
The industrial component dropped 52.1 per cent in September to $320 million, fuelled mainly by lower construction intentions for utilities-related buildings and manufacturing plants in Ontario, Quebec and Alberta.
The commercial component experienced an 11.8-per cent decline to $1.3 billion in September, when compared to the previous month. The drop in building permit values was due to a variety of decreased building intentions, including: retail and wholesale outlets, office buildings, recreational facilities, warehouses, hotels and restaurants, and laboratories. Ontario posted the largest decline in the commercial component, with six provinces in total posting decreased construction intentions.
Out of Canada’s 34 census metropolitan areas, 23 posted declines in building permit values, led by Hamilton, Toronto and Calgary.
Vancouver, Victoria and Saskatoon experienced the largest gains in construction intentions for CMAs.
Overall residential building permit values for the month of September increased 0.4 per cent to $4.2 billion. Four provinces experienced gains in the sector, with Ontario and Quebec posting the largest increases. Alberta experienced the largest decline in the residential sector, followed by Newfoundland and Labrador.
To view the full report, click here.
Source: Statistics Canada.