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.