Building index shows mixed sentiment and some hope among SA builders

Building sentiment improved slightly in the first quarter from the last three months of 2024, but most builders remain dissatisfied with business conditions and municipal delays are hindering growth in the sector, according to the FNB/BER Building Confidence Index on Monday. The index reading shows almost 60% of index respondents are dissatisfied with prevailing business conditions. Activity among non-residential builders continues to outperform that of residential builders, although both worsened somewhat. “The industrial and warehousing sub-sector has held up well over the past few years, supporting at least some non-residential building work. Now, we are seeing signs that demand for retail space – and to a lesser extent, office and banking space – is picking up too, which further supports the non-residential outperformance,” said FNB senior economist Siphamandla Mkhwanazi. The…