MNI DATA ANALYSIS:Canada Residential Permits Continue Dwntrend>

By Yali N'Diaye

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

municipalities increased 0.4% in August to C$8.1 billion, as gains in 

the non-residential sector more than offset a continued decline in the 

residential sector, data from Statistics Canada showed Wednesday. 

     On a 12-month basis, construction intentions were up 4.3% in 

August, after edging down 0.6% in July. Residential permits fell 1.2% 

and non-residential permits increased 14.2%. 

     -- RESIDENTIAL WEAKNESS 

     Construction intentions were dragged by the residential sector, 

where permits were down 4.4%, as single-family permits fell 5.2% and 

multiple-family dwellings fell 3.8%. 

     August marked the third consecutive month of decline in the 

residential sector, with a downward trend in single-family dwellings 

emerging since the beginning of this year. This trend coincides with the 

implementation of tighter macro prudential rules in January against the 

backdrop of ongoing monetary policy tightening. 

     Despite the monthly decrease in multiple-family dwellings, the 

value was up C$3.5 billion year-to-date from the same period in 2017, 

while it was down C$1.5 billion for single-family dwellings. 

     Looking at units, the multi-family sector, which mostly includes 

apartment buildings, represents 72% of the total units year-to-date, an 

increase from 68% over the same period last year. Meanwhile, the share 

decreased to 28% from 32% for single-family dwellings. 

     --NON-RESIDENTIAL REBOUNDS 

     On the other hand, construction intentions rebounded 8.8% in the 

non-residential sector in August from July, the largest monthly gain 

since September 2017. 

     The increase was led by institutional building permits, which were 

up 25.8%, followed by commercial buildings (+8.9%). 

     Construction intentions in the industrial sector were down 5.9%. 

     --ONTARIO, BRITISH COLUMBIA DIVERGE 

     Regionally, construction intentions diverged in Ontario, where they 

were down 8.2%, and in British Columbia, where they soared 31.5% on the 

month to a record C$1.8 billion. B.C. was one of the three provinces 

that recorded gains over the month. 

     In Toronto, the value of building permits fell 11.8%. 

     In Vancouver, construction intentions jumped 66.4%, the largest 

monthly gain since February 2009. 

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

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