Building permits down following five-year high
August 7, 2012 by On-Site staff
Building permit values fell 2.5 per cent to $6.8 billion in June, after hitting a five-year high in May. The decline was mainly fuelled by decreases in non-residential and residential construction in Alberta and B.C.
The value of building permits issued in the non-residential sector in June were valued at $2.5 billion, down 12.3 per cent from the previous month.
Institutional building permit values dropped 45.9 per cent to $519 million in June, following a 72-per cent gain in May.
Eight provinces posted declines in the sector, led by B.C. and Alberta.
B.C.’s drop was largely due to a decrease in construction intentions for government buildings, while a drop in permit values for medical facilities fuelled Alberta’s decline.
The industrial component experienced a slight decrease, down 0.2 per cent to $476 million in June, after a 17-per cent decline in May.
The decline was fuelled by decreases in construction intentions in most provinces, with the exceptions of Ontario, B.C., Manitoba and New Brunswick.
Commercial building permit values jumped 6.8 per cent to $1.5 billion in June, after a 12.9-per cent decline in May. The boost was led by higher construction intentions for recreational facilities in Ontario, as well as increased intentions for commercial buildings in Nova Scotia, P.E.I. and Quebec.
Out of Canada’s 34 census metropolitan areas, 22 experienced declines in building permit values in June.
Vancouver, Calgary and Edmonton experienced the biggest losses.
Toronto had the largest gain, resulting from an increase in construction permits for both residential and non-residential buildings.
The value of permits for the residential sector increased 4.2 per cent to $4.4 billion in June for its second consecutive monthly increase, fuelled mainly by an increase in permit values in Ontario.
To read the full report, click here.
Source: Statistics Canada.
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