The Medium-Term Forecasting Associates (MFA) leading indicator for the local building industry continued to climb during the fourth quarter of last year.

According to Johan Snyman, the director of MFA, the index value was currently on 69, just short of the peak of 75 recorded during the gold boom of 1980.

This composite index is based on 24 business survey indicators compiled by the Bureau for Economic Research at Stellenbosch University.

Snyman said lower interest rates had a positive effect not only on the overall business mood of builders, but also on real building activity levels.