The value of building permits increased 1.6 per cent to $5.1 billion in September, Statistics Canada said Thursday.

An increase in activity in the residential sector more than offset a decline in the non-residential sector, the agency said. It was the second consecutive monthly increase.

Municipalities approved the construction of 15,250 new dwellings in September, up 13.3 per cent. (Canadian Press)

The value of residential permits increased 9.4 per cent to $3.2 billion, a level not seen since September 2008. The increase was mainly a result of gains in the value of multi-family dwellings, especially in British Columbia and Ontario.

Municipalities approved the construction of 15,250 new dwellings in September, up 13.3 per cent. The increase was largely attributable to multi-family dwellings, which rose 27.8 per cent to 7,835 units.

In the non-residential sector, the value of permits fell 9.1 per cent to $1.9 billion in September. The decline largely reflects drops in the institutional and commercial components in British Columbia.

The value of building permits increased in seven provinces in September. British Columbia, Manitoba, and Newfoundland and Labrador were the exceptions.

Statistics Canada's building permits survey covers 2,400 municipalities representing 95 per cent of the population. It provides an early indication of building activity, which is itself an early proxy of confidence in the economy.