Canadian Building Permits Drop 10 Percent in June

The value of building permits issued by municipalities in June totalled $6.6-billion, down 10.3 per cent from May, Statistics Canada said Wednesday.

The federal agency said it was the first decrease in six months, and came mainly from the non-residential sector in Quebec and the residential sector in Ontario.

CIBC economist Peter Buchanan noted economists had expected a 2.8-per-cent drop and said the move suggests “housing starts may begin to slow in coming months from levels which continue to appreciably outpace underlying family formation.”

The total value of permits was down in 20 of the 34 cities included in the report with the biggest drops in Toronto where there was a decrease in multi-family dwellings and Montreal which say a drop in plans for commercial and industrial buildings.

via Globe and Mail

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