The value of building permits issued in Canada in May soared 20.9 percent, nearly erasing the steep 21.5 percent plunge in April thanks to non-residential plans, according to Statistics Canada data on Wednesday. Market operators had forecast a much more moderate 5.0 percent increase in May permits from April.
The May figure marks the largest monthly percentage increase since March 2009. Non-residential building intentions roared back to life with a 50.9 percent jump after two months of declines. Plans for commercial structures in Quebec, Alberta and Ontario rose 81 percent to a three-year high. Residential permits rose 5.3 percent as intentions for multifamily dwellings ramped up again after April's decline. The total value of permits increased in every province except Nova Scotia, Statscan said. Compared with a year earlier, total building permits were up 4.6 percent, with residential permits down 0.2 percent and non-residential intentions up 11.7 percent.