MNI DATA ANALYSIS:Cdn Building Permits Signl Weaker Hsg Starts>

--Feb Building Permits -2.6%; Residential -0.3%; Non-Residential -6.6%

--CMHC: March Housing Starts 225.2k Vs 217k Expected

     By Yali N'Diaye 

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

municipalities, an indicator of construction activity in the coming 

months, decreased 2.6% in February to C$8.2 billion, following a 5.2% 

increase in January, Statistics Canada reported Tuesday. 

     The data, although volatile, signaled weaker housing starts 

activity in the coming months, especially for single-family dwellings 

and the non-residential sector, against the backdrop of tighter macro 

prudential and monetary policy tightening. 

     The Bank of Canada is closely monitoring the impact of such 

policies on housing prices and activity, expecting that it will take 

some time to assess. 

     --HOUSING STARTS 

     Canada Mortgage and Housing Corporation reported earlier Tuesday 

that housing starts fell to a seasonally adjusted annual rate of 225,213 

in March from 231,026 in February, which was higher than the 217,000 

expected by analysts in a MNI survey. 

     The six-month trend, however, remained roughly stable at 226,842 

from 225,804 in February. 

     --MIXED RESIDENTIAL PERMITS 

     Residential construction intentions edged down 0.3% in February as 

a result of diverging paths. 

     Single-family dwellings were responsible for the overall decline as 

construction intentions in the sector fell a further 1.6% following a 

2.0% decrease in January. 

     Permits for multiple-family dwellings, on the other hand, rose 1.0% 

on the back of an already strong 14.4% gain in January, suggesting 

ongoing strength in actual starts. 

     --NON-RESIDENTIAL WEAKNESS 

     In the non-residential sector, construction intentions fell 6.6%, 

more than offsetting the 4.5% advance recorded in January. 

     The decline was led by the institutional (-9.7%) and commercial 

(-8.7%) components. 

     Permits for industrial buildings, on the other hand, were up 4.8% 

after plunging 19.5% the previous month. 

     --TORONTO, VANCOUVER DIVERGE 

     Building permits diverged between Canada's tightest and largest 

housing markets that are particularly subject to the Bank of Canada's 

scrutiny. 

     Permits fell 4.4% in Toronto after soaring 24.8% in January. 

     Construction intentions in Vancouver, meanwhile, recovered 5.5% 

after dropping 7.2% in January. 

     At the provincial level, however, permits fell both in Ontario 

(-3.2%) and in British Columbia (-5.0%). 

     Permits were down in six of 10 provinces. 

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

[TOPICS: MACDS$,M$C$$$]