The value of building permits rose in December for the first time in three months, Statistics Canada said Monday, but at a slightly slower pace than expected.
Permits were up 2.4 per cent to $5.7 billion during the month, the federal agency said, following a revised 10.5 per cent drop in November.
"The increase was mainly attributable to higher construction intentions for multi-family dwellings in Ontario," the agency said.
However, in B.C. there was a drop in value of 5.7 per cent.
Nationally, economists had expected a gain of between 2.5 and three per cent in December.
"The gains in December were driven by the residential component, while non-residential permits continue to slump,"said Krishen Rangasamy at CIBC World Markets.
"The advance in residential permits was primarily due to multiples -which also saw the largest drop in the prior month. The number of permits for dwellings overall were up 27 per cent in December, which may translate into a mild rebound of housing starts."
Statistics Canada said the value of residential permits rose 21.2 per cent to $3.8 billion in December after two consecutive monthly decliners.
Non-residential permits dropped 22 per cent to $1.9 billion -the lowest level since January 2010 -as commercial and institutional intensions fell in nearly all provinces.
Ontario had the biggest jump in building permits in December, at 22.4 per cent. Manitoba recorded a 10.8 per cent increase and Saskatchewan was up five per cent.
Quebec, however, fell 20.2 per cent, following an 18.2 per cent increase in November. Nova Scotia and Newfoundland and Labrador also recorded their second consecutive monthly declines, along with B.C., it said.
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