OTTAWA -- The outlook for construction activity brightened in May with the value of building permits jumping 14.5 per cent to the highest level in six months, Statistics Canada said yesterday.

Contractors took out $6.4 billion worth of permits in April "as construction intentions rose in all provinces and in both the residential and non-residential sectors," the federal agency said.

The surge in building permits comes after a 4.6-per-cent drop the previous month, and was above analysts' expectations of a 0.5-per-cent increase in April.

The residential sector saw a 13.4-per-cent rise in permits to $4 billion, while the value of non-residential permits increased 16.5 per cent to $2.4 billion, with the biggest gains in Ontario, B.C., Alberta and Quebec.

"The fact that all of this increase came from the volatile multi-units component does suggest that some give-back in the coming month," said Millan Mulraine, an economics strategist at TD Securities.

© The Vancouver Province 2008