By Akhil Shah

OTTAWA (MNI) – The value of building intentions rose 6.3% to C$7.0
billion in July, matching the record high of May 2007, Statistics Canada
reported Thursday. Increases in multi-family dwelling permits in Ontario
were mostly responsible for the gain.

July marked the third consecutive monthly increase after building
intentions rose 20.9% and 2.8% in May and June respectively.

Permits in the non-residential sector decreased 4.5% to C$2.7
billion in July, after increases in May and June of 51.1% and 3.0%
respectively, reported the agency.

The industrial component issued permits worth C$368 million in
July, posting a 40.1% decrease from June. Lower construction intentions
for utility buildings and transportation facilities in Ontario and
manufacturing plants in Quebec led the decline.

The institutional component issued permits worth C$758 million in
July, marking a 17.1% increase from June and also the third consecutive
monthly gain. Permits for educational facilities in Ontario and
Saskatchewan pushed intentions higher in July.

Following a 16.0% decline in June, value of permits marginally
increased 0.4% in the commercial component to C$1.586 billion.

The value of permits in the residential sector surged 14.6% to
C$4.3 billion in July, rising for the third consecutive month and
reached the highest level since December 2005. This follows gains of
5.2% in May and 1.5% in June.

Multi-family dwellings increased 30.4% in July, contributing to
most of the residential sector gains. Municipalities issued C$2.0
billion in multi-family dwelling permits after issuing C$1.55 billion
worth in June (0.5% decrease from May).

Single-family dwelling intentions increased 3.4% to C$2.3 billion,
marking its second consecutive increase.

Overall municipalities across Canada approved 21,022 new dwellings
in July, up 22.0% from June. The increase was a result of a 36.1% surge
in multi-family dwellings to 13,913 units. The number of multi-family
dwellings increased 1.5% to 7,109 units.

— Akhil Shah is a reporter with Need To Know News In Ottawa

** Market News International Ottawa **

[TOPICS: M$C$$$,MAUDS$]