Canada Building Permits Miss Forecasts as Non-Residential Slumps

Canada building permits missed expectations in May, with the total value falling 1.7% to C$12.4 billion against the 2.4% gain economists had forecast. Statistics Canada said the miss was driven by a 6.1% drop in non-residential construction intentions, led by industrial projects in Ontario. Institutional permits also weakened. Residential permits rose 1.2%, as strength in multi-unit projects in Vancouver and Toronto offset a decline in single-family construction. Building permits are a volatile monthly indicator, as large commercial and institutional projects can cause big swings from one month to the next. The report is unlikely to shift the broader outlook for Canada's housing or construction sectors on its own.