The FNB/BER Building Confidence index, a composite index gauging sentiment in the entire building value chain, plunged by 16 points in 1Q24 to reach 27 points. This represents the lowest level since 1Q21 when the country was under Covid-19 lockdown restrictions. The souring sentiment in 1Q24 follows two quarters of confidence gains, which aroused hopes that a sustained uptrend may be on the cards for the building sector.
The FNB House Price Index growth averaged 0.7% y/y in February, slightly lower than the 0.9% in January (revised from 0.6%). These low levels of house price appreciation should persist in the near term, amid still elevated living and borrowing costs, as well as heightened political uncertainty, both domestically and internationally.
Following our analysis of the latest GDP data release, we now turn our attention to gross fixed capital formation (fixed investment), a vital component of the GDP identity, to evaluate its trajectory. This assessment is pivotal given current conditions, including subdued business confidence and a low employment-to-population ratio.
Now that the 2024 Budget has been tabled, reflecting a more stable budget deficit and debt trajectory than feared, we think it is important to contextualise the budget within a global setting.
You use the information contained on this page (the "Information") at your own risk. First National Bank, a division of FirstRand Bank Limited ("the Bank"), provides no warranties or guarantees, whether express, implied or otherwise, in respect of the Information, its accuracy and/or reliability. Without limitation, the Bank does not warrant that the Information will ensure your compliance with accounting, auditory, financial, legal, business and/or tax requirements or will improve your business' performance. The Information does not constitute advice and should not be used as a substitute for obtaining professional or other advice where necessary. Neither the Bank nor its holding company, subsidiaries or other group companies will be liable to you for any claims, demands, expenses, costs, losses or damages, of whatsoever nature, suffered or incurred by you in respect of your use of the Information.
The Bank is the owner of the copyright in all content on this page. You may not publish, modify or adapt this content in any medium or format without the prior written consent of the Bank.
Estate Agents Survey Property Barometer
Cape Town Sub-Regional House Prices
Cape Town Sub-Regional House Prices
Gauteng Sub-Regional House Prices