Construction business confidences rise

Posted On Thursday, 20 October 2005 02:00 Published by eProp Commercial Property News
Rate this item
(0 votes)

Business confidence in the construction industry remains high, with the Bureau For Economic Research's confidence index rising to 94

Construction IndustryBusiness confidence in the South African construction industry remained at a high level in the third quarter, with the Bureau For Economic Research's (BER) confidence index rising to 94, from 90 in the second quarter and 91 in the first quarter.
The BER said on Thursday that the results from its third quarter business survey conducted in the building industry show that overall building activity is continuing at a satisfactory pace.
Dr Charles Martin, BER Senior Economist, said the strength was coming from the non-residential sector.
The BER said building materials shortages prevail and the current critical scarcity of skilled labour could seriously impair the ability of contractors to complete projects on time.
The BER added that building activity in the residential sector remained positive.
"The latest survey indicates that although building activity in this sector remains lively, the growth in profitability of respondents has slowed down," the BER said.
The present favourable business environment is expected to continue during the final quarter of 2005, it added.
The BER added that business conditions in the non-residential sector are robust and indications are that activity in this sector is becoming broad based. Demand for industrial and retail space in particular is driving building activity.
Respondents anticipate business conditions to improve further in the coming quarter.
The BER added that civil engineering construction activity weakened during the third quarter. Tendering competition consequently intensified and the growth in the profitability of respondents took a knock.
The outlook for the fourth quarter is for business conditions to remain stable, the BER concluded.

Last modified on Friday, 18 October 2013 13:20

Most Popular

Balwin's Munyaka registers record R850 million in opening weekend sales, selling 555 apartments

Mar 09, 2020
JSE listed Balwin Properties, a developer that cares about environmentally responsible…

Balwin Properties and ABSA launch South Africa’s first green home loan

Mar 13, 2020
Apartment 71933
JSE-listed Balwin Properties Limited (Balwin Properties or the Company) and Absa Group…

Growthpoint reports a steady first half with its growth strategies paying dividends

Mar 11, 2020
Growthpoint Properties Group CEO Norbert Sassee
Growthpoint Properties (JSE: GRT) reported distributable income growth of 2.2% to R3.2bn,…

Spear REIT launches innovative self-isolation campaign for returning travellers in Cape Town, South Africa to combat COVID-19:

Mar 18, 2020
Double Tree Op
JSE listed Spear REIT Limited, the owner of the Double Tree by Hilton Cape Town, is the…

Financial Fitness – Is this the right time to buy property?

Mar 20, 2020
Governor Lesetja Kganyago SARB1
With the South African Reserve Bank’s announcement of interest rates cut of 100 basis…

Please publish modules in offcanvas position.