08:47 AM EDT, 08/12/2024 (MT Newswires) -- Canada's total value of building permits fell 14% m/m to $9.9 billion in June, extending the decline observed in May, with decreases reported in 11 of the 13 provinces and territories as both residential and non-residential sectors saw reductions, the country's statistical agency reported on Monday.

June's drop contrasted with an expected 5.6% m/m consensus rise provided by MUFG.

On a constant dollar basis (2017=100), the total value of building permits declined 14.3% in June, following a 13.4% decline in May, noted Statistics Canada in a statement.

The total value of residential permits decreased 12% m/m to $6.5 billion in June. Overall, nine of the 13 provinces and territories contributed to this decline in residential permits.

Substantial declines in multi-unit construction intentions (-20% m/m; -$937.1 million) led to the overall residential decline in June. Ontario (-26%; -$551.2 million) and British Columbia (-31%; $222.6 million) drove the drop in multi-family dwelling permit values, with Ontario reporting the largest monthly decrease since December 2023.

Meanwhile, construction intentions in single-family homes moved up 4% m/m to $2.6 billion in June.

The total value of non-residential sector permits decreased 18% m/m to $3.5 billion in June, pointed out StatsCan. The industrial component dropped 43% (-$447.2 million) in June, following a 21% increase in May. Meanwhile, monthly declines in the commercial component (-16%; -$331.1 million) outweighed modest gains in the institutional component (+1.0%; +$11.1 million) across Canada.

The total value of building permits in Q2 was $34.6 billion, up 2.1% from Q1 ($33.9 billion). This represents a second consecutive quarterly increase and the fourth-highest quarterly value in the series, added the Ottawa-based agency.

Building permits data refers to the value of permits issued for residential (single-family and multi-family dwellings) and non-residential (industrial, commercial and institutional) construction. It is calculated from a survey of municipalities that issue permits and is seasonally adjusted as the construction industry is sensitive to seasonal changes. It's a leading indicator of Canada's construction industry.