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Canada building permits fall in May, pressured by non-residential weakness

The total value of permits dropped 1.7% to C$12.4 billion, with a 6.1% fall in non-residential construction intentions outweighing a 1.2% gain in residential permits.

Reported · Written up by our desk · Central Banks

Canada building permits for May came in weaker than expected, with the total value of permits falling 1.7% to C$12.4 billion, according to data covered by Forexlive. The monthly result compares with a 2.4% gain expected.

The decline was driven mainly by non-residential construction intentions, which fell 6.1%. Forexlive said the largest drag came from industrial projects, especially in Ontario, and weakness in institutional permits also weighed on the headline number.

Residential permits provided partial offset, rising 1.2% as multi-unit strength, led by Vancouver and Toronto, more than compensated for declines in single-family construction.

Forexlive noted that building permits can be volatile month to month because large commercial and institutional projects can swing totals, so the report is unlikely to meaningfully change the broader outlook for Canada’s housing or construction sectors by itself.

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