Construction business confidences rise

Posted On Thursday, 20 October 2005 02:00 Published by eProp Commercial Property News
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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

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