Building permit values down in July

According to a recent Statistics Canada report, overall construction intentions fell in July 2012, with building permit values down 2.3 per cent from June 2012 to $6.8 billion.

The decline was largely fuelled by lower construction intentions in Ontario.

Non-residential construction permit values were down 2.1 per cent to $2.5 billion in July, when compared to the previous month, following a 9-per cent decline in June.

Construction intentions dropped in six provinces with Ontario and Saskatchewan experienced the largest declines.

The institutional component was down 25.2 per cent to $404 million for the second straight monthly decline. This marks the lowest level for this component since February 2012. The decline was mainly driven by drops in construction intentions for educational institutions in Ontario and B.C.; and government buildings in Saskatchewan and Alberta.

The industrial component experienced a 3.7-per cent decline to $462 million after a 0.5-per-cent increase in June. The decline was mainly fuelled by a decline in construction intentions for manufacturing plants in Ontario.

Building permit values for the commercial component were up 6.4 per cent to $1.7 billion in July. The increase was largely due to higher construction for retail outlets and theatre and performing art centres in B.C.; and recreational facilities in Newfoundland and Labrador, Saskatchewan and New Brunswick.

Overall building permit values fell in 24 of the 34 census metropolitan areas. Toronto and Regina experiencing the largest declines in building permit values, while Vancouver and Montreal had the biggest gains.

Residential construction permit values dropped 2.4 per cent to $4.3 billion in July, when compared to June, with Ontario posting the most significant decline.

To read the full report, click here.

Source: Statistics Canada.