Canada building permits miss estimates in May, led by industrial plunge

Canada building permits missed expectations in May, falling 1.7% month-over-month against a consensus estimate for a 2.4% gain. The total value of permits came in at C$12.4 billion, a drop of C$215 million from April.

The decline was driven by non-residential weakness, which more than offset gains in the residential sector. Non-residential permits totaled C$4.7 billion, down 6.1% from the prior month. Industrial permits posted the largest drag, falling C$341 million to C$861.3 million.

Regionally, Ontario led the declines with a drop of C$236.2 million, followed by Quebec at C$52.3 million and Alberta at C$50.7 million. Eight provinces and one territory posted month-over-month decreases.

April's reading was revised slightly higher to a 6.6% decline, compared to the initially reported 7.6% drop. On a constant dollar basis, permits fell 1.6% month-over-month and were down 7.0% year-over-year.