After slipping to 27 in 1Q2021, the FNB/BER Building Confidence Index increased to 39 in 2Q2021. Even though this is the highest index level since 1Q2018, more than 60% of respondents are dissatisfied with current business conditions.
“There is a key distinction between when the index was last at this level and now,” says Siphamandla Mkhwanazi, property economist at FNB.
“In 1Q2018, confidence among the various sub-sectors which comprise this index was at more or less that level. Now, confidence is lifted by building material manufacturers and hardware retailers. In contrast, the confidence of what can be considered the mainstream building sector is still very depressed.”