Building intentions down

Published Friday August 8th, 2008
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Statistics Canada reported Thursday that the value of building permits fell 5.3 per cent from May to $6.3 billion, as construction intentions across Canada decreased both in the residential and non-residential sectors.

The residential sector saw a month-to-month decline of 4.4 per cent to $3.6-billion in June. The non-residential sector saw a 6.6 per cent decline to $2.8-billion, due to declines in industrial and commercial building intentions, Statscan reported.

The value of permits issued in Saint John was down 54.9 per cent. The value of permits issued in Montreal was down 12.1 per cent, in Calgary down 15.2 per cent, in Vancouver down 13.4 per cent and in Saskatoon down 16.7 per cent. The overall value of building permits is now 9.1 per cent lower than in the corresponding period last year.

As a whole, the province of New Brunswick saw declines of 11.5 per cent in the residential sector and 18.5 in the non-residential sector.

While Saint John's decline was among the highest seen across the country, Alex MacDonald, regional economist with the Canada Mortgage and Housing Corporation said the news is not all bad.

The large drop seen in the city is due in part to a large non-residential project that submitted a permit application the month before.

"Even if it looks like the world is falling away, that's because last month's number was so strong.

"But on average, June was a better month than last year. We've done better on a year to date comparison," said MacDonald.

- With files from Michelle Porter

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