Construction confidence deteriorates with demand for new work becoming scarcer

Following a gain of 5 points in 2Q2015, the FNB/BER Civil Confidence Index moved back by 5 points in 3Q2015 to 39. The current level of the index still indicates that more than 60 per cent of respondents are dissatisfied with prevailing business conditions.

Confidence was lower amid continued weak growth in construction activity, which in turn weighed on profitability. “Moderating growth in capital expenditure by general government, the inability of public corporations to make noticeable progress on key infrastructure projects, labour concerns and lower commodity prices which are dampening demand for investment by the mining sector and a slowdown in investment into renewable energy negatively affected construction activity in 3Q2015,” said Jason Muscat, senior industry analyst at FNB… Read more here on FNB’s Economics portal