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

Stellenbosch Bureau for Economic Research (BER) says building industry confidence is at levels last seen in the economic upswing of 1978 to 1981

The overall impression gained from the third quarter business survey conducted in the building industry by the Bureau for Economic Research (BER) is that the upswing in the building cycle is continuing

Demand driving residential sector

The BER Composite Business Confidence Index for the Building Industry has shown a further marginal increase during the second quarter of 2004

Outlook for 2004

BUILDER’s input costs are moderating in line with overall inflation

The Bureau for Economic Research has released its building survey results for the second quarter. According to the Building Cost Index, the increase in building costs is slowing, but the bureau forecasts that building costs will probably rise later this year by 8 percent.

The survey shows business confidence among contractors in the residential sector is waning.
Building activity levels in the non-residential sector remain unfavourable and new work is scarce. Although the lowering in interest rates should underpin activity levels for the next year, a real revival is only expected in the new year once overall
economic activity shows clear signs of acceleration.