The total value of building permits issued in Canada decreased by $399.1 million (-3.1%) to $12.6 billion in October. This comes on the heels of a strong September, during which construction intentions rose by $1.3 billion to the second-highest level in the series. Despite the monthly decline in October, the total value of building permits was the fourth-highest level in the series. In October, Ontario’s construction intentions (-$696.4 million) significantly contributed to the national non-residential decline, tempering total residential growth, after fuelling both sectors’ gains in September.
On a constant dollar basis (2017=100), the total value of building permits in October decreased 3.6% from the previous month and was up 8.1% on a year-over-year basis.
Declines in Ontario and Manitoba construction intentions push down the non-residential sector
The total value of non-residential building permits decreased by $576.3 million (-11.0%) to $4.7 billion in October, led by Ontario (-$300.9 million) and Manitoba (-$207.5 million). Overall, declines were seen across the institutional (-$368.2 million), commercial (-$127.5 million) and industrial (-$80.6 million) components.
Ontario’s non-residential sector decrease in October was driven by the institutional component (-$241.9 million), following the province’s record-high level reached in September. Manitoba’s decrease was driven by the industrial component (-$141.0 million) in October.