The total value of building permits in Canada declined by 1.5% in July, reaching a seasonally adjusted 11.66 billion Canadian dollars ($8.55 billion), according to Statistics Canada. Market expectations had predicted a drop of 2.4% following a 6.1% increase in permits for June. While non-residential construction intentions saw declines after a surge in the value of hospital permits in June, the residential sector displayed strength with significant growth in single-family home permits.
Residential Sector Drives Growth
The overall value of permits issued in July increased by 4.4% compared to the previous year. The residential sector experienced a 5.4% rise from the previous month, with permits valued at C$7.4 billion. Multifamily dwellings saw a 7.6% increase in intentions, while single-family homes also climbed by 7.6%.
Importance of Building Permits
Building permits serve as an early indicator of construction activity in Canada, representing a survey of 2,400 municipalities that cover 95% of the country's population. However, it is essential to note that the issuance of permits does not guarantee immediate construction.
Nonresidential Buildings Witness a Decrease
On the other hand, permits for nonresidential buildings experienced an 11.5% drop to $4.26 billion.
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