Home
FacebookTwitterSearchMenu
  • Subscribe
  • Subscribe
  • News
  • Features
  • Knowledge Library
  • Columns
  • Customs
  • Jobs
  • Directory
  • FX Rates
  • Categories
    • Categories
    • Africa
    • Air Freight
    • BEE
    • Border Beat
    • COVID-19
    • Crime
    • Customs
    • Domestic
    • Duty Calls
    • Economy
    • Employment
    • Energy/Fuel
    • Events
    • Freight & Trading Weekly
    • Imports and Exports
    • Infrastructure
    • International
    • Logistics
    • Other
    • People
    • Road/Rail Freight
    • Sea Freight
    • Skills & Training
    • Social Development
    • Sustainability
    • Technology
    • Trade/Investment
    • Webinars
  • Contact us
    • Contact us
    • About Us
    • Advertise
    • Send us news
    • Editorial Guidelines
Africa
COVID-19
Economy
Other

Building confidence rises – but sector remains depressed

15 Jun 2021
0 Comments

Share

  • Facebook
  • Twitter
  • Google+
  • LinkedIn
  • E-mail
  • Print

The Building Confidence Index compiled by First National Bank and the Bureau for Economic Research (BER) has reached its highest level since the first quarter (Q1) of 2018, with the rise mainly attributed to building manufacturers and hardware retailers.

And although the quarter-on-quarter recovery bodes well, rebounding from its fall to 27 in Q1, and increasing to 39 in Q2, the overall picture remains depressed, says Siphamandla Mkhwananzi, a property economist at FNB.

“There is a key distinction between when the index was last at this level and now.

“In Q1 2018, confidence among the various subsectors which comprise this index was at more or less that level.

“Now, confidence is being lifted by building material manufacturers and hardware retailers.

“In contrast, the confidence of what can be considered the mainstream building sector is still very depressed.”

In its assessment of the last index, FNB/BER pointed out that the increase from 27 to 39 was more pronounced than what had been expected.

“The index measuring activity was noticeably better this quarter and understandably so.

“The question asks respondents to compare activity relative to Q2 2020, a period when most building work was halted. As such, the improved activity is largely due to extremely low base effects and not suggestive of a vastly improved level of activity in the building sector,” Mkhwanazi says.

Still, relative to Q2 and figures seen year-on-year, he adds that overall profitability remains weak.

“Internationally we’ve seen building input prices rise dramatically over the past few months as global demand far outstrips supply.

“At the same time, domestic building demand remains too weak for contractors to fully pass these prices on to clients.

“As such, some contractors have had to resort to ‘suicide pricing’ to secure contracts.”

Sign up to our mailing list and get daily news headlines and weekly features directly to your inbox free.
Subscribe to receive print copies of Freight News Features to your door.

Resilience required for air sector disruption – executive

Air Freight

Air traffic in the region is expected to rise by an average of 6.4% annually.

Yesterday
0 Comments

Insight of the week: legally ditching higher duties

The actual practice can be traced back to 1882, when an importer in the United States had sugar coated with molasses.

Yesterday
0 Comments

How to avoid the fear of being evaluated

Freight & Trading Weekly
Logistics
Skills & Training

Lifelong learning has become the norm across all economic sectors, both in the UK and globally.

Yesterday
0 Comments

Skills needed to unfreeze African growth potential

Logistics

Growth in demand for cold chain efficiencies is being driven by economic development and rising income.

Yesterday
0 Comments

Iran seeks full control of Russian Caspian Sea terminal

Logistics

The port handles a broad range of goods, including grain, timber, metal products and fertilisers.

Yesterday
0 Comments

Port of Ngqura to welcome first ultra large container vessel

Logistics
Sea Freight

The ULCV stands nearly three metres taller than vessels typically handled at the terminal.

Yesterday
0 Comments

Global ferry body strikes deal to boost safety

Logistics
Sea Freight

The agreement promotes cooperation between international members and operators in West and Central Africa.

Yesterday
0 Comments

SITA appoints Pedro Alves as senior vice president

Air Freight
Technology

The new VP is taking the reins at a time when the needs of border agencies are fast evolving.

Yesterday
0 Comments

Drivers targeted in latest cross-border scam at Kasumbalesa

Logistics
Road/Rail Freight

The Copperbelt’s most important border has been flagged for another scam aimed at fleecing truck drivers.

01 Jul 2025
0 Comments

Automated multiple entries secure declaration ease on the TKC

Logistics
Road/Rail Freight
Technology

Removing single manifest entries is a major headache for consol cargo clients transiting through Botswana.

01 Jul 2025
0 Comments

Global air cargo demand rises

Air Freight
Logistics

But some trade lanes have experienced a decline despite increased capacity.

01 Jul 2025
0 Comments

Bank launches new SME exporter programme

Imports and Exports
Logistics

The development platform targets black-owned SMEs with turnovers under R50 million.

01 Jul 2025
0 Comments
  • More

FeatureClick to view

Road & Rail 27 June 2025

Border Beat

Forum tightens net against border corruption
25 Jun 2025
Police clamp down on cross-border crime
17 Jun 2025
Zim's anti-smuggling measures delay legitimate freight operations
06 Jun 2025
More

Poll

Has South Africa's ports turned the corner?

Featured Jobs

New

Road Logistics Pricing Specialist

Tiger Recruitment
East Rand
02 Jul
New

Operations Manager

Lee Botti & Associates
Cape Town
02 Jul
More Jobs
  • © Now Media
  • Privacy Policy
  • Freight News RSS
  • About Us
  • Advertise
  • Send us news
  • Contact us