Financial Wire

Total Value of Building Permits Issued Tumbled in February, With Decline Led By Non-Residential Sector, says Statistics Canada

-- The total value of building permits issued in Canada decreased by $1.1 billion, or 8.4% month over month, to reach $12.1 billion in February, said the country's statistical agency on Monday.

The decline in construction intentions was led by the non-residential sector, or $1.3 billion lower, and tempered by the residential sector, which rose $135.6 million, noted Statistics Canada in a statement.

On a constant dollar basis (2023=100), the total value of building permits issued in February decreased 8.6% from the previous month and was down 11.5% on a year-over-year basis, added StatsCan.

The value of non-residential building permits fell 24.0% month over month in February, the steepest decline since April 2023. The institutional component (down $987.2 million) accounted for most of the decline in February, while the commercial ($160.0 million lower) and industrial ($104.7 million weaker) components contributed to a lesser extent.

The increase in the multi-unit component (up $180.3 million) in the residential sector was partially offset by a decline in the single-family component (down $44.7 million).

The data refers to the value of permits issued for residential (single-family and multi-family dwellings) and non-residential (industrial, commercial and institutional) construction. It's calculated from a survey of municipalities that issue permits and is seasonally adjusted as the construction industry is sensitive to seasonal changes. It's a leading indicator of Canada's construction industry.

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