Statistics Canada values the building construction permits in August that falls by 27.3 per cent


The value of building permits issued in August fell by 27.3 per cent month-over-month to $6.7 billion as per Statistics Canada.

The agency points out that this reduces was primarily attributable to a drop-off in non-residential intentions in Quebec and residential intentions in Ontario.

The agreement estimate was for this metric to decline by 6.5 percent month-over-month after a string of vigorous readings.

The permits rose at a double-digit clip in each of the earlier three prints, with housing permits soaring in July as multi-family intentions in Toronto and Vancouver surged.

The residential permits experienced their first monthly decline since February, dropping by nearly 16 percent, while non-residential permits crashed by 40 percent.

Bank of Montreal senior economist Benjamin Reitzes wrote: “Both residential and non-residential permits hit their best level ever [in July], pointing to a broad-based decline.” He said: a decline of 20 percent, ahead of this release.

Single-family residential permits suffered only a modest decrease over the course of the month; multi-family intentions, on the other hand, fell by close to 30 percent.

On a municipal level, the value of permits experienced the largest demur in Montreal, Toronto, and Vancouver, and was slightly offset by a pick-up in Calgary.

For the Bank of Canada, which warned that activity in the housing sector was stronger than it anticipated, the vision of a moderation in residential construction will likely be welcomed. However, tumbling non-residential intentions are not indicative of the kind of move towards business investment that monetary policy framers desire.

Statistics Canada values the building construction permits in August that falls by 27.3 per cent