Canada Building Permits Fall More than Expected in May

The value of building permits in Canada fell 13 percent from the previous year to CAD 8.2 billion in May 2019, following an upwardly revised 16 percent gain in the previous month and compared with market expectations of a 2.5 percent decline. The value of residential permits dropped 17.2 percent to CAD 5 billion, due to the multi-family dwelling (-28.5 percent to CAD 2.7 billion) while the single-family dwelling permits rose (1.8 percent to CAD 2.3 billion) led by Ontario (+CAD 47 million). Also, the value of permits for non-residential buildings went down 5.7 percent to CAD 3.3 billion, mainly due to commercial (-0.9 percent to CAD 1.9 billion) and industrial permits (-37.5 percent to CAD 581 million). Meanwhile, institutional permits jumped 25.7 percent to CAD 815 million, boosted by higher construction intentions for secondary and elementary schools in British Columbia and nursing homes in Quebec and Ontario.