Canada’s builders took out a total of $4.3 billion worth of permits in October, down 4.9% from September according to a report from Statistics Canada.

Despite declines in intentions in October in both the residential and the non-residential sectors, StatsCan says permits are still well ahead of last year’s level.

Housing permits fell 3.3% from September’s record level to $2.8 billion, the result of a drop in intentions for both single- and multi-family dwellings.

The value of non-residential permits declined 7.7% to $1.5 billion, their lowest level since March. This was a result of decreases for industrial and institutional projects, says StatsCan.

StatsCan adds that prospects remain good for an exceptional year. On a year-to-date basis, total intentions were up 8.9% from the first 10 months of 2002 to $42.6 billion. Municipalities have issued $26.4 billion worth of housing permits, up 7.2%, while the value of non-residential permits has increased 11.8% to $16.2 billion.
Note to readers

Municipalities issued $1.93 billion in permits for single-family dwellings in October, down 2.1% from the record $1.97 billion set in September. Construction intentions for multi-family dwellings followed a similar path, declining 5.9% to $885 million.

However, intentions in both sectors remained well above 2003’s average monthly value.

StatsCan says builders took out fewer institutional and industrial permits in October, while the value of commercial permits held steady.

Institutional permits fell 19.5% to $421 million, their lowest level in seven months. This was largely the result of a decline in demand for education and social service buildings in British Columbia. Institutional permits in this province plunged 71.5% to $27 million, the largest drop among the provinces.

The industrial component fell 8.8% to $232 million, the third consecutive monthly decline. This was the lowest level since March 2002. Lower demand for permits associated with utilities and manufacturing buildings in Ontario precipitated this drop.

Permits for the commercial sector showed continuing strength, holding steady at $821 million. This was the highest level since the record set in January this year. Demand for commercial permits in Ontario was particularly strong (+33.3% to $444 million), as construction intentions for trade and services buildings increased.