Construction sector hopes confidence is no house of cards
The rebound in the FNB/BER building confidence index is a "positive surprise", says John Loos, property economist at FNB. But he warns it comes off a low base and will be difficult to sustain given the poor economic fundamentals affecting the sector. Nearly 60% of index respondents remain dissatisfied with business conditions. The biggest increase in confidence was among building material manufacturers. That should be welcome news to Cashbuild, Southern Africa’s biggest retailer of building materials. Revenue for the six months to December 2017 was up a tepid 5%, as operating profit fell 10% in the period and headline earnings per share slid 8%. Cashbuild is trading in an "exceptionally tough" market, CEO Werner de Jager says. The FNB/BER index rose to 43 points in the first quarter of 2018 from 31 points in the fourth quarter of 2017. Apart from quantity surveyors, all six sub-sectors registered higher confidence. Fifty index points is the neutral mark. Higher building activity is ...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.