MNI DATA ANALYSIS:Canada Building Sept Permits +0.4%; 3Q -1.1%>

By Yali N'Diaye

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

municipalities increased 0.4% to C$8.1 billion in September, but this 

was not enough to lift the quarter into positive territory, data from 

Statistics Canada showed Tuesday. 

     Over the third quarter, construction intentions fell 1.1%, as they 

were down 1.1% in August and 1.6% in July, indicating a negative 

contribution of construction activity to GDP in months ahead. 

     On a 12-month basis, construction intentions were down 0.6% in 

September after rising 2.7% in August. 

     - NON-RESIDENTIAL LEADS 

     Building permits increased 0.6% in the non-residential sector and 

0.3% in the residential sector.  

     Over the third quarter, non-residential construction intentions 

were up 7.5%, the largest increase since the second quarter 2017, owing 

to a 6.0% gain in August that more than offset July's 0.8% decrease. 

     On the other hand, residential building permits were down 5.8% in 

the third quarter after edging up 0.5% in the second quarter. 

     Construction intentions for institutional buildings led the 

non-residential gains in September, as they were up 16.4%. 

     Permits for industrial buildings fell 5.7% on the month and they 

were down 3.3% for commercial buildings. 

     Within the residential sector, gains were concentrated in 

multi-family dwellings, which posted a 1.5% increase offsetting the 1.2% 

decline in single-family dwellings. 

     - VANCOUVER, TORONTO DIVERGE 

     Regionally, construction intentions increased in six provinces, led 

by Quebec. 

     Data showed ongoing divergence between Toronto (+18.9% in 

September) and Vancouver (-37.9%, the largest drop since March 2017, 

following a 65.9% surge in August). 

     The divergence between the two large cities translated at the 

province level, with permits rising 0.8% in Ontario in September and 

falling 19.8% in British Columbia. 

     Still, on a quarterly basis, construction intentions rose 7.9% in 

British Columbia, while they contracted 4.1% in Ontario, the largest 

decline in a year. 

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

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