Canada's builders remained in high gear in 2004, Statistics Canada reported Monday, with building permits setting a new record for the second year in a row.

The federal agency reported that building permits for the full year rose more than nine per cent to $55.4 billion, beating 2003's record of $50.8 billion.

"The annual level of permits has now increased for nine straight years," Statscan said in its Daily Bulletin.

"Overall construction intentions reached new peaks in every province except Prince Edward Island and Saskatchewan."

The housing market was the main driver in 2004, with the total value of permits issued up by 14.7 per cent from 2003 to $36.7 billion.

"There were strong advances in both single- and multi-family dwellings components," Statscan said.

Municipalities authorized the construction of 240,640 new dwelling units last year, up by 18,095 from 2003 and the highest number since 1987.

In the non-residential market, a weak start to year made for a flat finish. Permits totalled $18.7 billion, down by 0.4 per cent from 2003.

"Strong gains in the commercial component were offset by declines in industrial and institutional intentions," Statscan said.

2004 finished with a solid showing in December, with permits on the month up by 1.6 per cent from November to $5.1 billion. It was the third straight monthly increase.

The consensus among economists had been for a decline in December of 2.2 per cent.

Instead, the value of permits issued in December was the second highest on record following June's total of $5.4 billion.

In December, the value of residential permits rose 8.2 per cent to $3.4 billion, while permits for non-residential projects fell by 9.4 per cent to $1.7 billion.