Value of Building Permits Plummet by Record 14.8% in May
Following what were four straight months of record-breaking gains, the value of building permits suddenly plummeted 14.8% in May, as every component reported some form of decline.
According to Statistics Canada, the value of building permits fell by a record $1.6 billion to a total $9.5 billion in May, as a decline in multi-family dwellings in Ontario accounting for almost three-fifths of the national decrease.
Construction intentions for the residential sector contracted by 16% to $6.5 billion, as multi-family dwelling permits fell 20.6% to $3.3 billion, marking the lowest level since August of last year. Similarly, permits issued for single-family buildings dropped 10.6% across Canada, as all provinces aside from Newfoundland and Labrador reported declines, while the province of Quebec was responsible for nearly half the total decrease.
Building permits issued for construction activity in the non-residential sector were also down, falling 12.2% to $3 billion in May. The value of commercial permits plummeted 15.8% to an overall $1.6 billion, while permits issued for industrial buildings were down in value by 14.6% to $511 million, as seven of the ten provinces noted a decline in this component.
Statistics Canada also reported that construction plans for institutional buildings were also on the decline, falling by 3.4% to $900 million. Although four provinces reported gains, the significant $115 million decline observed in Quebec was not enough to offset the increase.
Information for this briefing was found via Statistics Canada. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.