Prior month revised to -6.6% versus -7.6% previously reportedbuilding permits for the month of May -1.7% versus +2.4% estimate.
Details of the Report:
Overall
Total building permits:C$12.4B, -1.7% m/m (-C$215.0M)
Decline driven by non-residential weakness, partially offset by residential gainsConstant dollar basis (2023=100):-1.6% m/m-7.0% y/y
Non-Residential Sector
Total non-residential permits:C$4.7B, -6.1% (-C$306.1M)
Industrial led the non-residential decline.
C$861.3M, -C$341.0M (largest drag)
Biggest provincial declines:
Ontario: -C$236.2M
Quebec: -C$52.3M
Alberta: -C$50.7M
Eight provinces and one territory posted declines.
Commercial
C$2.4B, +C$81.4M
Led by:
British Columbia: +C$183.1M
Ontario: +C$62.9M
Newfoundland & Labrador: +C$33.5M
Offset by:
Quebec: -C$183.0M
Institutional
Declines led by:
Ontario: -C$240.2M
Quebec: -C$74.1M
Partly offset by:
British Columbia: +C$183.6M
Residential Sector led by gain in Muli-unit permits
Total residential permits:C$7.7B, +1.2% (+C$91.1M)
Multi-Unit
C$5.1B, +C$161.9M
Growth led by:
British Columbia: +C$304.4M
Ontario: +C$235.0M
Largest metro gains:
Vancouver: +C$216.0M
Toronto: +C$129.0M
Offset by:
Quebec: -C$272.6M
Nova Scotia: -C$79.2M
Single-Family units decline
C$2.6B, -C$70.7M
Largest declines:
Quebec: -C$65.7M
Manitoba: -C$19.5M
Alberta: -C$13.8M
Canada’s building permits data for May came in weaker than expected, with the total value of permits falling 1.7% to C$12.4 billion, driven primarily by a sharp 6.1% decline in non-residential construction intentions. The biggest drag came from industrial projects, particularly in Ontario, while weakness in institutional permits also weighed on the headline figure. Residential permits provided some offset, rising 1.2% as strength in multi-unit projects—led by Vancouver and Toronto—more than compensated for a decline in single-family construction. Despite the softer headline, building permits are often a volatile monthly indicator, as large commercial and institutional projects can create sizable swings from one month to the next. As a result, the report is unlikely to significantly alter the broader outlook for Canada’s housing or construction sectors on its own.
This article was written by fl932d6e52a19643278e0f123bca7198f5 at investinglive.com.