Value of Building Permits Recovers in June, Rises 6.9%
Following a month of record declines that saw building permit values suddenly plummet 14.8% in May, construction intentions in June rebounded 6.9%, as seven of the 10 provinces contributed to the gain.
According to Statistics Canada, the total value of building permits rose from $9.5 billion to $10.3 billion in June, as residential and non-residential construction intentions rebounded 9.1% and 2.2%, respectively. Permit values for single-family homes rose 4.7% to $3.4 billion, as seven provinces reported gains in this component, particularly Ontario and Alberta.
Non-residential construction saw building permit values jump in eight of the provinces, as commercial permits rose 7.4% to $1.7 billion. Similarly, industrial permits increased 2.3% to $526 million. Conversely, the institutional construction sector reported a decline of 6.7% to $871 million, as a significant decrease in Ontario brought down the overall component.
With respect to the second quarter, total building permits were down 1.7% to $31 billion, compared to the first three months of 2021. However, the value of construction intentions were still the second highest on record, and were 38.5% above levels observed during the same period a year ago.
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.
