Canadian building permits fell more than four times as much as expected in August, as companies and governments planned fewer new structures.
Statistics Canada reported that the total value of permits issues by municipalities decreased 9.2% to $5.75 billion. The drop was the largest since February 2009, and exceeded even the most pessimistic forecast which anticipated a 2% decline.
Non-residential construction permits dropped 23% to $2.2 billion while the value of permits for institutional buildings dropped 39%. The number of permits for institutions was hampered as Ontario cut intentions for hospitals and Quebec planned fewer schools, the report said. Industrial buildings fell 12%, the third straight monthly decline, led by factories in Ontario and utilities in Alberta. Permits for commercial buildings also declined 12%, as firms planned fewer hotels, office buildings and laboratories.
The report also detailed that residential permits increased 2% to $3.54 billion, which represents a 15% increase from the same month in 2009. Permits for multiple-unit dwellings surged 13% in August, while single-family home permits dropped 4.9%.
The total value of building permits was 11% percent higher than the year ago month, the report said.
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