Growth in the building sector lost further momentum in the second quarter of 2015, according to the latest FNB/BER Building Confidence Index. This is after the sector slowed in the first quarter of 2015 as well. However, despite the poorer performance by the sector in the second quarter, the outlook is somewhat more upbeat. This is mainly due to a marked rise in activity at the start of the building pipeline, which is gaining momentum.
- Although building confidence was lower in the second quarter, it remained at a level which indicates that the building sector continued to grow in the second quarter. However, growth proceeded at a more subdued pace.
- More than half of the respondents are satisfied with prevailing business conditions.
- Main contractor activity, both residential and non-residential, continued to deteriorate during the quarter.
- Hardware retail sales remained well supported, suggesting continued informal sector activity.
- Noticeable improvement in the volume of work by architects in particular and quantity surveyors should see building construction regain some ground towards the latter part of this year and 2016.