Municipalities issued $6.5 billion worth of building permits in September — an increase of 13.4 per cent over the previous month, Statistics Canada said Thursday.

The increase, which followed August's 11.7 per cent decline, was driven by construction in the non-residential sector, the federal agency.

"In the non-residential sector, the value of permits rose 41.7 per cent to $3.2 billion," said Statistics Canada.

Ontario, Saskatchewan and Alberta recorded the most growth in this area.

"This increase was generated by a substantial gain in institutional permits, and lesser increases in the industrial and commercial components."

In the residential sector, the value of permits declined 4.9 per cent to $3.3 billion.

Statistics Canada attributed the decline to fewer requests for multi-family dwellings — such as condominiums and apartments, particularly in Ontario and British Columbia.