Statistics Canada announced on Tuesday that the value of building permits issued by the Canadian municipalities dropped 13.0 percent m-o-m in May, following a revised 16.0 percent m-o-m jump in April (originally a 14.7 percent m-o-m surge).

Economists had forecast a 2.5 percent drop in May from the previous month.

According to the report, the value of residential permits tumbled 17.2 percent m-o-m in May, as permits for multi-family dwellings plunged by 28.5 percent m-o-m, while single-family permits rose by 1.8 percent m-o-m.

At the same time, the value of non-residential building permits decreased by 5.7 percent m-o-m in May, due to lower construction intentions for industrial buildings (-37.5 percent m-o-m), which however were offset by a surge in permits for institutional component (+25.7 percent m-o-m). The value of commercial permits edged down 0.9 percent m-o-m in May.

In y-o-y terms, building permits decreased 1.9 percent in May.