Business confidence in building sector on five-year high

The First National Bank/Bureau for Economic Research (FNB/BER) building confidence index showed a rise from 41 in the second quarter of the year to 48 index points in the third quarter, despite a slowdown in activity of main contractors, sub-contractors and architects.

The 48 points, out of a possible 100, mark the index's highest level in five years.

Overall, growth in the building sector continued in the third quarter of the year, but at a more modest pace than in the second.

"Even though main contractor [and to a lesser extent sub-contractor] activity slowed during the quarter, other smaller, informal projects continued to support the sector.

This is reflected in the confidence of building material retailers, which rose from 46 to 56 in the third quarter of 2012," FNB said in a release.


Compared to the second quarter of 2013, the index found the following changes in confidence levels took place: manufacturers of building materials (+25), retailers of building materials (+10), quantity surveyors (+7), architects (+4), main contractors (-2) and sub-contractors (-2).

"Looking ahead, the building pipeline remains supportive of further growth. However, the recovery in building activity is likely to be modest given the headwinds confronting the sector in the form of lacklustre economic growth, slower growth in consumer spending and, more recently, labour unrest," the release said.

Subscribe to the M&G

These are unprecedented times, and the role of media to tell and record the story of South Africa as it develops is more important than ever.

The Mail & Guardian is a proud news publisher with roots stretching back 35 years, and we’ve survived right from day one thanks to the support of readers who value fiercely independent journalism that is beholden to no-one. To help us continue for another 35 future years with the same proud values, please consider taking out a subscription.

Related stories

Advertising

Subscribers only

How lottery execs received dubious payments through a private company

The National Lottery Commission is being investigated by the SIU for alleged corruption and maladministration, including suspicious payments made to senior NLC employees between 2016 and 2017

Pandemic hobbles learners’ futures

South African schools have yet to open for the 2021 academic year and experts are sounding the alarm over lost learning time, especially in the crucial grades one and 12

More top stories

Zuma, Zondo play the waiting game

The former president says he will talk once the courts have ruled, but the head of the state capture inquiry appears resigned to letting the clock run out as the commission's deadline nears

Disinformation harms health and democracy

Conspiracy theorists abuse emotive topics to suck the air out of legitimate debate and further their own sinister agendas

Uganda: ‘I have never seen this much tear-gas in an...

Counting was slow across Uganda as a result of the internet shutdown, which affected some of the biometric machines used to validate voter registrations.

No way out for Thales in arms deal case, court...

The arms manufacturer has argued that there was no evidence to show that it was aware of hundreds of indirect payments to Jacob Zuma, but the court was not convinced.
Advertising

press releases

Loading latest Press Releases…