Bloomberg News

South African Building Confidence Declines in Third Quarter

September 28, 2011

Sept. 28 (Bloomberg) -- South Africa’s building confidence index declined to 23 in the third quarter from 24 due to weak demand for construction, especially in the “high-end market,” First National Bank said.

“Constrained credit conditions, despite the low interest rate, and oversupply continued to hamper the building trade,” the Johannesburg-based lender, a unit of FirstRand Ltd., said in an e-mailed statement today.

“Increased investor uncertainty following renewed sharp falls in global share markets and economic growth downgrades at best point to continued weakness in the building industry in the next quarter or so,” it said.

--Editors: Gordon Bell, Karl Maier

To contact the reporter on this story: Franz Wild in Johannesburg at fwild@bloomberg.net

To contact the editor responsible for this story: Andrew J. Barden at barden@bloomberg.net


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