Statistics Canada said gains were recorded in seven provinces, with the biggest increases coming in British Columbia and Quebec, where permits were issued across all sectors.

Photograph by: Spencer Platt, Getty Images

OTTAWA — Building permits rose unexpectedly in June, rising one per cent to $5.2 billion, Statistics Canada said Thursday.

The sharpest increases in the value of building permits issued in June were in British Columbia (+30.3%, for a total value of $632 million), which had gains in every component except commercial and industrial building permits.

"The increase was attributable to gains in both residential and non-residential construction intentions," the federal agency said.

Economists had expected permits to decline by about three per cent in June. The May increase in permit values was revised to 17.5 per cent from the agency's previous estimate of 14.8 per cent.

Statistics Canada said gains were recorded in seven provinces, with some of the biggest increases coming in British Columbia (up 30.3 per cent) and Quebec (up 11 per cent), where permits were issued across all sectors.

The biggest declines were in Saskatchewan (down 29.3 per cent) and Alberta (down 24 per cent), mainly due to weaker non-residential intentions.

Among major centres, the biggest gains came in Montreal (up 36.9 per cent) and Hamilton (up 289.3 per cent). The value of permits declined in Calgary by 33 per cent.

"Since the beginning of 2009, the value of permits has fallen by 26.2 per cent compared with the same period a year earlier," the agency said. "The institutional component of the non-residential sector was the only component that posted a gain compared with the first six months of 2008."

The value of residential permits rose 0.5 per cent to $2.7 billion in June — the fourth straight monthly increase in the sector — led by Quebec.

Non-residential sector permits increased 1.5 per cent to $2.5 billion during the month.

Charmaine Buskas, senior economics strategist at TD Securities, said the "the continued strength of the building permit data bodes well for the Canadian construction market."

"It is clear that domestic considerations will remain a key driver for the economy, as the external sector remains under pressure," she said.