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Canada's Building Permits Fall Much More Than Expected in July, Led by Non-Residential Sector

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Canada's building permits fell 17.3% monthly to CA$12.2 billion in July, reversing June's gain, led by a CA$1.9 billion drop in non-residential permits, while residential permits fell by CA$701.2 million, according to the country's statistical agency on Wednesday.

July's drop was much higher than the 4.8% monthly consensus decline provided by Bloomberg in a survey.

In real terms, the total value of permits fell 17.5% month over month and 2.2% year over year, Statistics Canada wrote in a statement.

Within the non-residential sector, institutional permits led the decline, falling CA$1.5 billion to CA$1.7 billion, while industrial permits dropped CA$443.3 million to CA$795.5 million. Commercial permits edged up CA$41 million to CA$2.5 billion, added StatsCan.

Residential construction intentions fell CA$701.2 million to CA$7.2 billion in July, driven by a CA$531.8 million decline in multi-unit projects to CA$4.7 billion. Single-family intentions fell CA$169.4 million to CA$2.5 billion.

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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