Building confidence lower despite rebound in residential activity in Q2
- The FNB/BER Building Confidence Index fell for the second consecutive quarter in Q2 2016, by 5 points to 34. The current level of the index indicates that more than 65% of respondents are dissatisfied with prevailing business conditions. In addition, all of the six sub-sectors surveyed registered lower confidence.
- Compared to 1Q2016, the FNB/BER Building Confidence Index was down 5 points to 34 in 2Q2016.
- Confidence was lower in all the sub-sectors surveyed, with the largest drop recorded among hardware retailers.
- Despite the decline in confidence, there were some sectors where building activity/sales improved, namely residential contractors and manufacturers of building material.
- In sum, after starting the year on the back foot, the building sector remained under pressure in 2Q2016. However, this quarter there was a clear improvement in certain sectors, unlike in 1Q2016 when the weakening in the sector was broad-based.