On a seasonally adjusted, q-o-q basis, overall growth in recorded building plans, in real terms, fell by - 1.2% in the second quarter of 2006, compared with the first quarter. While growth in non-residential building plans was a healthy 14.7% for the quarter, the -6.5% decline in residential building plans passed dragged the overall figure down into negative territory.
 
Examining the provincial breakdown in building plans passed, on a year- to-date basis almost every province reported an increase in the value of building plans passed.  With the exception of the Free State, every province recorded an increase in the value of plans passed over the period of January - June 2006, compared to the same period in 2005.  The Western Cape, Gauteng, and Kwa-Zulu Natal accounted for over 80% of the total plans passed, confirming that construction growth is highly localised.
 
The picture for building completions in the second quarter was more negative.  On a seasonally adjusted, q-o-q basis, growth in building completions was negative for every subsector of construction, with growth in non-residential building completions particularly poor, at -16.0% compared with the first quarter of 2006.

Overall building completions declined by -4.2% in the second quarter of 2006.
 
On a provincial level and a year-to-date basis, growth in completions for the first half of the year was more positive.  Six out of the nine provinces recorded double-digit growth in building completions when January - June 2006 is compared to the same period in 2005.
 
It would appear that after a relatively strong first quarter's growth, construction and building activity in the months of April to June was not able to maintain the same pace.  The strong quarterly growth in non- residential plans passed speaks to sustained activity in the non-residential sector for the remainder of 2006.  While overall construction activity appears to have slowed down with the residential market coming off the boil, we maintain our views that strong demand for office and warehousing space will keep growth in the sector positive.