The value of Canadian building permits issued in August plunged 9.2 percent from July, well below market expectations, Statistics Canada said on Thursday, a far greater drop than the 2 percent decline predicted by market watchers. July's month-on-month decrease totaled only 3.8 percent. Economists say, however, the growth in the residential sector was a positive sign.
The main drag on the August numbers came from the institutional component of the nonresidential sector, which, after two months of increases that brought the level to a record high, tumbled 38.9 percent.
Permits issued in the residential sector rose by 2 percent, after four months of declines, with a 12.9 percent spike in permits for multiple family units.
Nonresidential intentions dropped 22.9 percent in August from July to C$2.2 billion, led by the drop in the institutional component.
The overall value of permits was still 11.4 percent higher in August than a year earlier.