ABSA: Residential Building Activity – First quarter of 2015

Dear Valued Customer

The first quarter of 2015 saw continued subdued levels of building activity in the South African market for new housing, as reflected by the number of building plans approved and the number of buildings completed. Compared with a year ago, the volume of building activity contracted in both the planning and construction phases in the first three months of the year.

In view of expected trends this year in major economic factors such as rising inflation, higher interest rates and low employment growth, as well as continued pressure on household finances and low consumer and building confidence, residential building activity is forecast to remain relatively subdued in the rest of the year.

Kind Regards

The BondExcel Team

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