The value of building permits sought by contractors fell for third month in July, suggesting a fall off in construction activity, Statistics Canada reported today.

The agency says the overall value of building permits issued in July by towns and cities fell for the third time in four months. Economists had expected a rise of 0.8%.

While the value of permits for housing showed a modest increase, those for industrial and commercial ventures fell.

The agency says towns and cities issued $4.9 billion worth of permits in July, down 3% from June.

Still, the July level remained 5.2% higher than the average monthly level in 2004, a record year.

The value of housing permits edged up 1.3% o $3.2 billion, but non-residential permits were down 10.2% to $1.7 billion.