September 8, 2014 / 12:43 PM / 5 years ago

Canada building permits jump 11.8 percent in July, hit record high

A condominium building is seen under construction in Toronto, March 10, 2014. REUTERS/Aaron Harris

OTTAWA (Reuters) - The value of Canadian building permits issued unexpectedly jumped by 11.8 percent in July from June to hit a record C$9.16 billion ($8.40 billion), Statistics Canada data indicated on Monday.

Analysts forecast a 6.8 percent drop after June’s increase, initially reported at 13.5 percent, then revised to 16.4 percent. The previous high was the C$8.20 billion recorded in June. The figures are seasonally adjusted.

The value of permits for multifamily dwellings soared by 43.4 percent on the back of higher construction intentions for apartment and condominium projects in the populous provinces of Ontario and British Columbia.

The value of residential buildings grew for the fifth consecutive month while the nonresidential sector advanced for the fourth month in a row. Both hit record highs in July.

The Canadian finance ministry said it was closely watching the booming condo market but has so far played down talk of a potential bubble.

Reporting by David Ljunggren; Editing by Jeffrey Benkoe

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