INDEX: 90% DISSATISFIED WITH BUSINESS CONDITIONS
THE FNB/BER Civil Confidence Index gained only 1 percentage point in the second quarter of 2019 from the all-time low of 10 points registered in the first three months of the year. The index level means close to 90 percent of respondents are dissatisfied with business conditions, FNB property economist Siphamandla Mkhwanazi said yesterday. “It’s disheartening that confidence has been so low for such a prolonged period. However, the reasons for the downbeat sentiment are clear from the underlying data. These include persistently weak activity growth and paper-thin profit margins,” he said. Statistics South Africa reported a 0.9 percent annual decline in the real value of construction works in the first three months of 2019. “The second quarter survey revealed the index measuring activity growth that registered its worst level since 2010. This means the slowdown in construction activity is expected to continue, and most likely intensify,” Mkhwanazi said. In addition to the current weak demand, new demand was not forthcoming. | HYSTEAD, which is 60 percent owned by JSE-listed Hyprop Investments, has completed the 12 000m² extension to The Mall of Sofia in Bulgaria. In line with Hyprop’s strategy to own shopping centres that dominate in terms of size, The Mall of Sofia’s two-level extension would add 40 new stores to 222 in total, making it the second largest shopping centre in Bulgaria at 62 000m². Hyprop chief executive, Morné Wilken, said yesterday that the successful opening of the mall extension in Sofia was important for Hystead, as it demonstrated its ability to execute its investment strategy to focus on fewer, but high quality large dominant shopping centres that deliver sustainable returns.” The upgrade was expected to create a preferred location for local and international brands. The surrounding node consists of high-rise office and residential complexes, with more development under way. Hystead owns six prime shopping centres in the capital cities of Bulgaria, Croatia, Northern Macedonia, Montenegro and Serbia.
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