FNB/BER Building Confidence Index shows small recovery

Confidence in the building sector recovered to 25 points in the second quarter, recovering from the two-decade low of 22 in the prior quarter. Picture: Karen Sandison/African News Agency(ANA)
JOHANNESBURG – Confidence in the building sector recovered to 25 points in the second quarter, recovering from the two-decade low of 22 in the prior quarter.

The FNB/BER Building Confidence Index yesterday showed that overall sentiment rose, although there was a sharp decline among manufacturers of building materials. The index goes between zero – an indication of extreme lack of confidence – and 100, which indicates extreme positivity.

The index showed that the following respondents were satisfied with business conditions: architects, quantity surveyors, main contractors, sub-contractors, manufacturers of building materials, retailers of building materials and hardware.

However, manufacturers of building materials shed 35 points to register a level of 4 after gaining 17 index points in the previous quarter.

FNB senior economist Siphamandla Mkhwanazi said the underlying indicators suggested a mild improvement in activity, but off a low base.

Source: iol.co.za