Canada Building Permits Drop

Ottawa, Ontario, June 6, 2006--The value of Canadian building permits plunged 10.6 percent in April, far more than expected, as both residential and non-residential construction activity slowed in the wake of the second-strongest showing on record in March. Analysts had forecast a 3.6-percent drop in the value of construction permits issued, according to a Reuters poll. "It was the lowest level for permits since November 2005 and 1.5 percent below the average monthly level for last year as a whole," Statscan said. However, construction activity remains healthy overall, the agency said, noting an upward trend in permits that began last year. The non-residential sector took the biggest hit in April, with approvals down 18.4 percent compared with March when big hospital projects figured prominently. Housing permits dropped 5.7 percent in value as single-family housing permits slipped for the third straight month and permits for multiple-family dwellings fell 8.7 percent after two months of gains.