Building permit value drops 15.9%
Canwest News Service
Canwest News Service
Published: Tuesday, April 07, 2009
The value of Canadian building permits fell 15.9% to $3.7-billion in February, led by a big decline in the non-residential sector in Ontario, Statistics Canada said yesterday.
Most economists had expected a decline of between 3.5% and 4% during the month, following a revised drop of 6% in January.
Non-residential permits plunged 30.5% to $1.6-billion in February. "This decline was due to a drop in Ontario and decreases in four other provinces," the federal agency said.
The value of residential permits was down 0.3% to $2.1-billion, with an increase in multiple-dwelling intensions in British Columbia "nearly offset the declines in the residential sector in six provinces," it said.
Ian Pollick, economics strategist at TD Securities, said, "This is a weak report and further suggests that the pace of building activity has come against pretty strong economic headwinds over the past few months, as growth has been under pressure."
"And as the correction garners momentum, the pace of construction activity will likely continue to moderate in the near term." he said.
In the non-residential sector, the value of institutional building permits fell declined 56.4% to $363-million in February, compared with a 64.2% decline the previous month.
"The decrease came mainly from construction intentions for medical buildings in Ontario and Quebec and a decline in permits for educational institutions in Ontario and Alberta," Statistics Canada said.
Commercial permits dropped 20.4% to $972-million, with the declines mainly in office and recreational intensions in Ontario. Meanwhile, industrial permits rose 14.3% to $236-million-- rebounding from a 50.8% drop in January -- with gains reported in six provinces.
In the residential sector, municipalities issued $756-million worth of multi-family permits, up 10.6% from January. "The value of multi-family dwelling permits nearly quadrupled in British Columbia, while Quebec, Saskatchewan and Ontario reported declines," the agency said.
The value of Canadian building permits fell 15.9% to $3.7-billion in February, led by a big decline in the non-residential sector in Ontario, Statistics Canada said yesterday.
Most economists had expected a decline of between 3.5% and 4% during the month, following a revised drop of 6% in January.
Non-residential permits plunged 30.5% to $1.6-billion in February. "This decline was due to a drop in Ontario and decreases in four other provinces," the federal agency said.
The value of residential permits was down 0.3% to $2.1-billion, with an increase in multiple-dwelling intensions in British Columbia "nearly offset the declines in the residential sector in six provinces," it said.
Ian Pollick, economics strategist at TD Securities, said, "This is a weak report and further suggests that the pace of building activity has come against pretty strong economic headwinds over the past few months, as growth has been under pressure."
"And as the correction garners momentum, the pace of construction activity will likely continue to moderate in the near term." he said.
In the non-residential sector, the value of institutional building permits fell declined 56.4% to $363-million in February, compared with a 64.2% decline the previous month.
"The decrease came mainly from construction intentions for medical buildings in Ontario and Quebec and a decline in permits for educational institutions in Ontario and Alberta," Statistics Canada said.
Commercial permits dropped 20.4% to $972-million, with the declines mainly in office and recreational intensions in Ontario. Meanwhile, industrial permits rose 14.3% to $236-million-- rebounding from a 50.8% drop in January -- with gains reported in six provinces.
In the residential sector, municipalities issued $756-million worth of multi-family permits, up 10.6% from January. "The value of multi-family dwelling permits nearly quadrupled in British Columbia, while Quebec, Saskatchewan and Ontario reported declines," the agency said.
