- MarketPulse - https://www.marketpulse.com -

Canada Building Permits Fall

Contractors took out building permits worth $6.6 billion in June, down 10.3% from May and the first decrease in six months.
Despite this decline, the total value of building permits continued to trend upward.

The decrease in June came mainly from the non-residential sector in Quebec and the residential sector in Ontario.

After three consecutive monthly increases, the total value of permits in the residential sector declined 12.9% to $4.0 billion in June. The value of residential building permits was down in nine provinces, led largely by Ontario, followed by Quebec and Alberta. Saskatchewan and the Northwest Territories showed the only gains in June.

In the non-residential sector, the total value of building permits decreased 6.1% to $2.7 billion in June. Quebec, Manitoba and Prince Edward Island accounted for most of the decline. Gains were recorded in five provinces, led by Alberta, British Columbia and New Brunswick.

Residential sector:

Construction intentions down for both multi-family and single-family dwellings

Building permits for multi-family dwellings fell 18.8% to $1.8 billion in June, following three consecutive monthly gains. Lower construction intentions for apartments and apartments-condominium projects in Ontario, Quebec, Alberta and Nova Scotia contributed to the decline in June. Decreases were registered in nine provinces, with Ontario posting the largest decline, followed by Quebec.

Construction intentions for single-family dwellings decreased 7.4% to $2.2 billion in June, following two consecutive monthly increases. Lower construction intentions were posted in seven provinces with Ontario, Alberta and Quebec accounting for most of the national decline.

Canadian municipalities authorized the construction of 17,656 new dwellings in June, down 12.2% from May. The decline was attributable to both multi-family dwellings, which fell 16.0% to 11,541 units, and single-family dwellings, which decreased 4.1% to 6,115 units.

Bloomberg [1]

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Dean Popplewell

Dean Popplewell [6]

Vice-President of Market Analysis at MarketPulse [7]
Dean Popplewell has nearly two decades of experience trading currencies and fixed income instruments. He has a deep understanding of market fundamentals and the impact of global events on capital markets. He is respected among professional traders for his skilled analysis and career history as global head of trading for firms such as Scotia Capital and BMO Nesbitt Burns. Since joining OANDA in 2006, Dean has played an instrumental role in driving awareness of the forex market as an emerging asset class for retail investors, as well as providing expert counsel to a number of internal teams on how to best serve clients and industry stakeholders.
Dean Popplewell
Dean Popplewell

Latest posts by Dean Popplewell (see all [6])