Canadian building permits rose at a slower-than-expected rate in February as planned residential construction declined for the ninth time in 12 months, suggesting developers are taking on fewer new projects as the housing market cools.

The overall value of building permits issued by Canadian municipalities grew 1.7% to 5.95 billion Canadian dollars ($5.85 billion), supported by gains in the non-residential sector, Statistics Canada said Tuesday. Permits were down 8.5% year-on-year.

The consensus call was for a 3% monthly increase, according to a report from Royal Bank of Canada. The prior month's gain was revised a tad higher to 1.8% from 1.7%.

The data, which provide an early indication of building activity, is based on a survey of 2,400 municipalities representing 95% of the country's population.