Building permits dip 1% in February: StatsCan

The value of building permits issued in February fell one per cent from the previous month to $5.8 billion the fourth monthly decline recorded, Statistics Canada said Monday.

The federal agency noted that a significant decline in Ontario offset gains recorded in other regions of the country.

"February's decline resulted from much lower non-residential construction intentions in Ontario," Statistics Canada said in its report. "If the province were excluded, the total value of building permits nationally would have increased 9.8 per cent, instead of declining one per cent."

The value of permits also fell in New Brunswick and Saskatchewan.

Meanwhile, demand for new multi-family dwellings drove up the value of permits in Alberta 11.8 per cent to $1.3 billion.

Nationally, the value of multi-family buildings soared 31 per cent to $1.5 billion, said Statistics Canada. Meanwhile, single-family permits increased 11.6 per cent to $2.4 billion.

The federal agency noted the number of residential units has slowed since the end of the summer of 2007.

"Price increases in the housing sector and signs of a weakening U.S. economy may have contributed to a softening of demand."

However, several factors could have a positive impact on the demand for housing, including steadiness in employment, growth in disposable income, strong immigration as well as low interest rates, Statistics Canada said.

Non-residential permits for institutional, commercial and industrial buildings dropped 25.6 per cent to $1.9 billion its lowest value over the past 12 months.

Statistics Canada said the decline may be linked to the weakening U.S. economy and the strong loonie.