The value of building permits increased sharply in March, rebounding with a double-digit gain following a particularly sluggish performance in February.

Contractors took out building permits worth $6.1 billion, a 27.4% increase from February, Statistics Canada reported today.

Both residential and non-residential sectors recorded comparable gains.

Intentions in the non-residential sector surged 30.2% to $2.4 billion, in the wake of strong performances in the industrial and commercial sectors that more than offset a slight decline in institutional intentions.

In the residential sector, both single- and multi-family components were on the rebound, pushing the value of permits up 25.6% over February to $3.7 billion. This was the highest level during the last five months.

The total value for permits in March was 0.9% higher than the monthly average during the last three months of 2006. The last quarter of 2006 was the strongest on record for the value of building permits.

Both residential and non-residential intentions recorded widespread gains among the provinces, with a few exceptions. In Manitoba, permits declined in both sectors. In Nova Scotia and Newfoundland and Labrador, intentions declined only in the residential sector.