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Building permits decline in March: StatsCan

0 27 Government

by Journal Of Commerce

Contractors took out $6 billion worth of building permits in March, down three per cent from February, reports Statistics Canada.

Contractors took out $6 billion worth of building permits in March, down three per cent from February, reports Statistics Canada.

The March decline followed an 11.3 per cent decrease the previous month.

Lower construction intentions in the non-residential sector in six provinces, led by Ontario, more than offset a gain in the residential sector.

In the non-residential sector, construction intentions fell below 8.8 per cent to $2.3 billion in six provinces, the lowest level since January 2013.

This follows a 7.4 per cent increase the previous month.

Gains were registered in four provinces, led by Alberta, followed by Nova Scotia and British Columbia.

In the residential sector, the value of permits rose one per cent to $3.7 billion, following a 20.8 per cent decrease in February.

Higher residential construction intentions were registered in five provinces, led by British Columbia and Saskatchewan. Quebec and New Brunswick posted the largest decreases.

Canadian municipalities issued $467 million worth of institutional building permits in March, down 31.3 per cent from February.

The value of institutional building permits was down in five provinces. Ontario accounted for most of the decrease, the result of lower construction intentions for medical facilities.

British Columbia and Alberta posted the largest gains in March, as a result of educational institutions.

After posting a 29.7 per cent increase in February, the value of permits in the industrial component fell 7.7 per cent in March to $329 million.

Declines in four provinces, led by Quebec and Ontario, offset increases in the other provinces.

The decline in March was largely the result of lower construction intentions for mining facilities and agricultural buildings in Quebec, as well as manufacturing plants in Ontario and Quebec.

British Columbia recorded the largest gain, followed by New Brunswick and Nova Scotia.

In the commercial component, the value of permits rose 1.2 per cent to $1.5 billion. Alberta accounted for most of the increase as a result of higher construction intentions for retail complexes and hotels and restaurants.

British Columbia and Saskatchewan posted the largest declines, mostly the result of lower construction intentions for office buildings.

In the residential sector, the value of permits for multi-family dwellings rose 7.9 per cent to $1.6 billion in March, following a 30.7 per cent decrease in February.

Increases were reported in most provinces, led by Ontario and British Columbia.

Construction intentions for single-family dwellings fell 3.6 per cent to $2.1 billion.

This was the fourth decrease in five months and marked the lowest level for the component since February 2011.

Declines were registered in seven provinces, with Ontario and New Brunswick posting the largest decreases.

Canadian municipalities approved the construction of 15,833 new dwellings, 12.2 per cent more than in February. The rise was attributable to multi-family dwellings, which increased 21.2 per cent to 10,191 units.

In contrast, single-family dwellings fell 1.2 per cent to 5,642 units.

The total value of building permits was down in five provinces in March, with the largest decline in Ontario.

Ontario’s decrease was mainly attributable to lower construction intentions for institutional building, and to some extent, single family dwellings and industrial buildings. Quebec’s decrease was mainly attributable to industrial buildings and multi-family dwellings.

Lower construction intentions for single-family dwellings and commercial buildings were the reason for the decline in New Brunswick.

Alberta saw the largest increase in the total value of permits, with commercial building intentions mainly responsible for the growth.

British Columbia was a distant second, followed by Nova Scotia.

Institutional buildings and multi-family dwellings contributed the most to the advance in British Columbia, while commercial buildings and multi-family dwellings were responsible for the gain in Nova Scotia.

The total value of permits was down in 16 of the 34 census metropolitan areas.

Kingston, Ont. saw the largest decrease, largely due to drops in institutional buildings.

Edmonton saw the largest increase in March, followed by Oshawa, Ont. and Quebec.

Edmonton’s increase was largely a result of higher construction intentions for multi-family dwellings, institutional buildings and commercial structures

JOC NEWS SERVICES.

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