The value of building permits fell below the $6 billion mark in January for the first time since last April, Statistics Canada said today. An increase in the non-residential sector was insufficient to compensate for fewer construction intentions in the residential area, the government agency said.

Municipalities issued $5.9 billion worth of building permits, down 2.9% from December’s value of $6 billion, the third consecutive monthly decline.

Statistics Canada said building sites should remain busy in the first part of 2008, despite the recent declines, since construction intentions were strong in 2007.

The value of residential building permits dropped 13.9% to $3.3 billion, fuelled by a 26.9% drop in multi-family housing while intentions fell 5.4% in the single-family component.

The value of non-residential permits rose 16.4% to $2.5 billion after two monthly decreases, as institutional, commercial and industrial permits all were on the rise.

“This weak report suggests that building activity is likely to moderate slightly in the coming months in Canada,” wrote TD Securities economic strategist Millan Mulraine in a morning note.

Provincially, the largest dollar gain was in Ontario, where municipalities approved $2.4 billion worth of permits in January.

Alberta also posted a significant gain — up 4.2% to $1.2 billion — thanks to growth in the industrial and the institutional components.

The total value of building permits fell in four provinces, with the largest dollar decrease in British Columbia, at 22.4% to $815 million, the lowest level since April 2006.

Important retreats also occurred in Saskatchewan, down 44.4%, and Newfoundland and Labrador, down 54.6%.