By Cees Bruggemans, Chief Economist FNB

It can be very unsettling when hitting an air sack, and only natural to assume things won’t quickly return to normal as trouble has a way of coming in multiples.

The South African building industry certainly has reason to be suspicious of any early suggestions of recovery, given the exuberant times that lasted for several years after which the plunging descent into deep recession last year was one of the most abrupt in decades.

Yet the deeper it falls, the more likely a bottom is reached, provided shock absorbers are fully extended.

The peaking of interest rates late last year, since then shedding 500 points, certainly provided important support for the building sector.

This evidence is also starting to shine through in opinion surveys. The FNB/BER building confidence index for 3Q2009 released last week offered a series of data points all suggesting a