Building sector sentiment climbs to joint 10-year high, but majority still unhappy with conditions

SOUTH Africa's building sector ended the year on a stronger footing, with the FNB/BER Building Confidence Index rising eight points to 43 in the fourth quarter of 2025—its joint highest reading in a decade and above the long-term average of 40.

- SIPHELELE DLUDLA

The improvement follows a slight dip to 35 in the third quarter.

Yet, despite the encouraging jump, the latest index level released on Monday still indicates that more than half of survey respondents remain dissatisfied with prevailing business conditions.

Hardware retailers, buoyed by stronger sales, were the biggest drivers of the improvement, with confidence in this segment rising 21 points.

FNB senior economist Siphamandla Mkhwanazi said the rebound reflects resilient consumer demand supported by lower inflation, interest-rate cuts, and continued withdrawals from the two-pot retirement system.

“The jump in hardware retailer confidence returns the index to more or less the level registered at the start of the year and reaffirms some of the broader trends regarding theresilience of the SA consumer,” Mkhwanazi said.