Building industry confidence lower

A FALL in the FNB/BER building confidence index indicates conditions in the industry have deteriorated further.

The index fell by 11 points to 41 in the second quarter of the year.

This indicates that about 60% of respondents are dissatisfied with prevailing business conditions.

"The slowdown in domestic demand is partly due to the prolonged labour unrest in the platinum sector‚" FNB property economist John Loos said.

The drop in overall building confidence was largely due to a sharp fall in the confidence of material manufacturers about domestic demand.

Positively, the export market remained buoyant‚ but this was not enough to boost confidence.

Although exports‚ mainly to the rest of Africa‚ remained robust‚ volumes were small in comparison to the domestic market, Loos said.

The weakness in the domestic building sector was further reflected in the activity of main contractors, whose confidence levels dropped from 49 points to 45. – BDlive