The total value of Canadian building permits issued fell by 1.7% month-over-month in May to C$12.4 billion, as weakness in the non-residential sector offset modest gains in residential construction plans, said the country's statistics agency Friday.
Bank of Montreal Capital Markets wrote in a note before the data that it expected building permits to rise 5% monthly.
The non-residential sector led the decline, with permit values shedding 6.1% on the month to C$4.7 billion, according to Statistics Canada. The industrial segment accounted for most of the decline.
Residential construction intentions increased by 1.2% month over month to C$7.7 billion, supported by stronger multi-unit construction permits, added StatsCan.
The data refers to the value of permits issued for residential -- single-family and multi-family dwellings -- and non-residential, which comprises industrial, commercial and institutional construction. The leading indicator of Canada's construction industry is calculated from a survey of municipalities that issue permits and is seasonally adjusted as the sector is sensitive to seasonal changes.