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Value of Canadian building permits down 5.5 percent in June

Monday, 08 August 2016 23:39:45 (GMT+3)   |   San Diego
       
According to Statistics Canada, municipalities issued building permits worth $6.4 billion in June, down 5.5 percent from the previous month. Lower construction intentions for multi-family dwellings and institutional buildings were mostly responsible for the decline.

In the residential sector, the value of building permits fell 5.0 percent to $4.1 billion. This was the third consecutive monthly decline. The decrease in the value of multi-family dwelling permits more than offset the gain posted by single-family homes.

The value of non-residential permits was down 6.2 percent to $2.3 billion in June, led by lower construction intentions for institutional buildings. Decreases were registered in seven provinces.

The value of permits for multi-family dwellings was down 15.8 percent to $1.7 billion in June. Construction intentions for single-family homes were up 4.2 percent to $2.4 billion, the fourth advance in five months.

Municipalities approved the construction of 14,960 new dwellings in June, down 8.1 percent from the previous month. The decline was attributable to multi-family dwellings, which decreased 13.7 percent to 9,280 new units. Conversely, single-family homes were up 2.7 percent to 5,680 new units.

The value of institutional building permits was down 20.6 percent to $664 million in June, following notable gains the two previous months. Lower construction intentions for hospitals were largely responsible for the drop.

In the industrial component, the value of permits fell 8.7 percent to $346 million. Lower construction intentions for primary industry buildings were mostly responsible for the decrease.

The value of commercial building permits rose 4.3 percent to $1.3 billion in June, after recording a 14.8 percent decline in May. The advance was attributable to higher construction intentions for retail and wholesale outlets, recreational facilities, and warehouses.



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