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Sharp decline in building confidence index clouds South African construction outlook
The Star
|June 10, 2025
The FNB/BER Building Confidence Index has taken a significant hit, plunging five points to a troubling 36 in the second quarter of 2025 after a modest gain in the first quarter.
The Index released on Monday characterises a construction industry at a crossroads, where the prospects of a recovery are overshadowed by a consistent drag from the residential sector.
This latest reading revealed that nearly 65% of respondents in the construction sector expressed dissatisfaction with the current business conditions, raising red flags for the sector's health as the market grapples with both residential and non-residential challenges.
Amid these struggles, the sentiment surrounding main contractors has reached its lowest point since the third quarter of 2022, dropping to a dismal 35.
The decline has been primarily driven by an ongoing downturn in the residential sector, which has seen a dramatic drop in activity.
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