Ottawa, Statistics Canada says municipalities issued building permits worth $9.2 billion dollars in July, up 11.8 per cent from June.
The federal agency says it was the fourth month in a row that the value of building permits increased.
Economists had expected a drop of 6.8 per cent, according to Thomson Reuters.
Statistics Canada says the increase in July resulted primarily from higher construction intentions for multi-family dwellings in Ontario and British Columbia, as well as institutional buildings in Manitoba.
It says the value of non-residential building permits was up 5.2 per cent to a record high $4.2 billion in July, the fourth consecutive monthly gain. Meanwhile, the value of residential building permits was up 18.0 per cent to $5.0 billion in July, up for the fifth month in a row.
Gains were posted in five provinces in July, led by Ontario, followed by British Columbia and Manitoba. The agency says the value of permits was up in 21 of the 34 census metropolitan areas in July.