The latest FNB/BER building confidence index shows that building activity has finally stabilised. It slipped to 33 points in the last quarter of 2022 from 34 in the previous quarter, indicating broad stability for much of the year.
According to the index, the sub-sectors that comprise the composite index, all registered significant changes in confidence compared to the third quarter.
Overall sentiment among material manufacturers, main contractors and quantity surveyors was positive.
Factors lifting main contractor confidence included a slight improvement in profitability and less keen tendering price competition with upbeat prospects for building activity in 2023.
However, confidence among hardware retailers, architects and building sub-contractors pulled down the overall business mood.
Non-residential contractors also reported a slowdown in building activity this quarter.
The business confidence of architects declined to 34, from 50 in 3Q of 2022 on the back of softer activity, while confidence among quantity surveyors was up, lifting their confidence to 31 points.