Canada building permits soar on single-family units

The value of Canadian building permits issued in September soared 15.3 percent from August, well above market expectations, on both residential and nonresidential building intentions, Statistics Canada data showed on Friday.

Market traders had predicted a 2.5 percent increase. Statscan revised July’s month-on-month plunge to 9.5 percent from an initially reported drop of 9.2 percent. Permits rose to C$6.6 billion ($6.6 billion) in September, just below the April 2010 peak of C$6.7 billion.

In the residential sector, the value of permits increased 8.3 percent to C$3.9 billion as single family home construction plans jumped 9.5 percent following five months of declines. Multiple-family dwellings also posted a healthy 6.7 percent increase on the heels of a similar hike in the previous month.

The volatile nonresidential sector, which dragged permits down in August increased 26.7 percent in September led by plans for office buildings in Ontario, Quebec and British Columbia.

The overall value of permits now stands 23.9 percent higher in September from a year earlier.