FX.co ★ Canada Building Permits Fall More Than Expected

In June, the total value of building permits issued in Canada decreased by 9.0% compared to the previous month, amounting to $12.0 billion. This drop significantly surpassed market predictions of a 3.4% decline and overturned a revised 12.8% increase recorded in May, representing the steepest decrease since June 2024. The decline was primarily influenced by Ontario’s institutional sector, which fell by $1.4 billion after contributing to growth in May. Residential intentions saw a reduction of $318.0 million, totaling $7.1 billion, mainly driven by a $486.8 million decrease in multi-family permits in British Columbia. This was partially counterbalanced by a $261.1 million increase in Ontario. On a national scale, multi-family permits declined by $144.5 million, and single-family permits decreased by $173.5 million, with significant reductions observed in Ontario and Alberta. Non-residential permits experienced a drop of $863.8 million, bringing their total to $4.9 billion. Commercial permits fell by $87.4 million, with notable decreases in Quebec, British Columbia, and Nova Scotia, which were partially offset by increases in Ontario. The industrial sector, however, saw a rise of $192.7 million, primarily driven by gains in Quebec and Ontario. On an annual basis, the total value of permits increased by 6.9%.