Growth in building plans approved, but construction phase contracted in early 2018

The planning phase of new housing improved in the first seven months of 2018, whereas the construction phase contracted. These diverging trends were the result of strong growth together with a significant contraction in some categories of housing in the planning and construction phases respectively.

Building activity (with regard to alterations and additions to existing houses) slowed down, with both the building area approved and the building area reported as completed showing a contraction on a year-on-year basis in the seven months up to July.

Against the background of a struggling economy, increased financial pressure on consumers and low building confidence in the first three quarters of the year, residential building activity in general is expected to remain in line with recent trends in the rest of the year.

Read more here: Absa Building Stats – July 2018