MNI DATA ANALYSIS:Canada Building Permits -2.3% On Multiples>

By Yali N'Diaye

     OTTAWA (MNI) - The value of permits issued by Canadian 

municipalities decreased 2.3% to C$8.1 billion in June, following a 4.8% 

gain in May, led  by multi-family dwellings, data from Statistics Canada 

showed Wednesday. 

     For the second quarter, total permits fell 1.8% after rising 2.4% 

in the first quarter, indicating slower construction activity ahead. 

     As the Bank of Canada continues to assess the housing sector's 

response to tighter macro prudential and monetary policies, Wednesday's 

data showed that while construction intentions declined, the sector 

shows no sign of a housing collapse. 

     --MULTIPLES DRAG RESIDENTIAL SECTOR 

     Construction intentions fell 5.7% in the residential sector, the 

largest decrease since April 2017, led by an 8.0% drop in 

multiple-family dwellings that erased May's 8.1% advance.  

     Single-family dwellings were also down, but to a lesser extent 

(-2.9%), following a 6.7% increase in May. 

     After dipping to a seasonally adjusted annual rate of 193,902 in 

May, housing starts rebounded to 248,138 in June, and analysts in a MNI 

survey expect a decline to 220,000 in July, which, however, remains a 

solid pace. 

     --NON-RESIDENTIAL REBOUNDS 

     In the non-residential sector, on the other hand, the value of 

building permits rose 4.6%, led by a 16.3% gain in institutional 

buildings following four months of declines. 

     Industrial permits were up a further 5.3% after rising 11.3% in 

May, while commercial building permits edged up 0.8% after decreasing 

2.9%. 

     Overall, residential permits were down 0.3% in the second quarter 

while non-residential permits fell 4.6% after a 4.2% decline in the 

first quarter. 

     --WIDESPREAD DECLINES REGIONALLY 

     Regionally, construction intentions were down across six provinces, 

led by Quebec. 

     British Columbia was among the provinces recording lower 

construction intentions, with building permits down 1.8%, although this 

was on the back of a 18.4% gain in May. June included a 2.6% decline in 

Vancouver. 

     Permits in British Columbia fell 8.7% in the second quarter, led by 

a 24.9% drop in the non-residential sector, while the residential sector 

decreased 3.1%. 

     In Ontario, on the other hand, permits were up 1.3% in June after 

rising 14.8% in May, for a second quarter modest increase of 0.1%, after 

a 3.4% decrease the previous quarter. 

     Like Vancouver, Toronto was among the 20 out of 36 metropolitan 

areas to record lower construction intentions, with permits down 5.7%, 

leading to a second quarter decrease of 3.1%, led by a 16.2% drop in the 

non-residential sector. 

--MNI Ottawa Bureau; email: yali.ndiaye@marketnews.com 

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