MNI DATA ANALYSIS:Cdn Buildng Permits Up But Provinces Diverge>

--Mar Building Permits +3.1%; Residential +2.3%; Non-Residential +4.5%

     By Yali N'Diaye 

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

municipalities, an indicator of construction activity in the coming 

months, recovered 3.1% to C$8.4 billion in March, the highest level 

since June 2017, following a 2.8% decline in February, Statistics Canada 

reported Wednesday. 

     On a 12-month basis, the pace of permits growth increased to 10.8% 

from 6.3%, as the residential sector picked up to 11.7% from 3.2%. 

Meanwhile, non-residential permits rose 9.1% in March from a year 

earlier, following a 12.3% gain in February. 

     Over the first quarter, total permits were up 3.3% after edging up 

0.3% in the fourth quarter. 

     --MULTIPLE, INDUSTRIALS LEAD 

     Permits increased 2.3% in the residential sector in March, for a 

quarterly gain of 6.9%. 

     The rise was led by multi-family dwellings, which were up 12.2% to 

a record C$3.0 billion, mostly reflecting higher intentions for 

apartment buildings. 

     In the non-residential sector, construction intentions were up 

4.5%, with an 11.6% gain in the industrial component and a 10.0% advance 

for commercial buildings. 

     The institutional component, on the other hand, was down 12.7%. 

     --WEAKENING SINGLE-FAMILY 

     On the other hand, single-family intentions contracted 7.9%, led by 

a 13.7% drop in Ontario. 

     Data from Canada Mortgage and Housing Corporation Tuesday reflected 

such divergence between single and multiple units. 

     Housing starts fell to a seasonally adjusted annual rate of 214,379 

units in April, down from 225,459 in March.  

     The six-month trend was little changed at 225,696 units from 

226,942 in March, as starts for single-detached homes declined in April 

while they increased for multi-unit dwellings. 

     --MIXED REGIONAL PICTURE 

     While overall permits increased in March, it was the result of 

divergent trends across the country. 

     Just half of provinces actually recorded higher construction 

intentions over the month. 

     In particular, the two large metropolitan areas closely monitored 

by the Bank of Canada, Toronto and Vancouver, continued to diverge. 

     Permits fell 20.8% in Toronto, on the back of a 5.2% decrease the 

previous month. 

     The province of Ontario recorded a 12.4% decline in March after a 

3.5% decrease in February, leading to a first quarter drop of 3.4%, 

nearly erasing the fourth quarter gain of 3.9%. 

     In Vancouver, permits soared 27.8% in March after rising 3.1% in 

January. 

     Construction intentions in the Vancouver area rose 22.1% in the 

first quarter after declining 6.5% in the fourth quarter. 

     In British Columbia, construction intentions were up 15.8% in the 

first quarter after edging down 0.2% the previous quarter. 

     In April, housing starts in the Vancouver Census Metropolitan Area 

"continued their strong trend throughout April," CMHC said Tuesday. 

     Meanwhile, housing starts trend in the Toronto CMA remained 

"virtually unchanged", as "high house prices continued to deter buyers 

from purchasing." 

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

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