The First National Bank (FNB)/Bureau for Economic Research (BER) Civil Confidence Index rose to 52 in the fourth quarter of last year, up from 43 in the third quarter.

This marks the joint best level (along with the third quarter of 2016) in 11 years.

The current score means that more than 50% of respondents were satisfied with prevailing business conditions.

Supporting the higher sentiment was a solid improvement in activity, states the index report.

According to Statistics South Africa, the real value of construction works contracted by 3% year-on-year in the third quarter of 2025.

The newest survey results, however, point to a much less pronounced decline in activity in the fourth quarter of 2025 off the back of renewable energy and mining projects, notes FNB senior economist Siphamandla Mkhwanazi.

In addition to more work, overall profitability was also higher.

The index measuring the growth in overall profitability registered its best level since the end of 2007.

“It is a stretch to claim that profit margins are as generous as they were in the run-up to the 2010 FIFA World Cup final, when work was much more abundant, but it is clear that civil contractors are enjoying better margins. This undoubtedly contributed to the better business mood,” remarks Mkhwanazi.

Looking ahead, respondents expect activity to continue its upward trajectory in the first quarter of the new year.

This higher sentiment is in step with better activity and overall profitability, which suggests a potential rebound in the sector.

The forward-looking indicators, while mixed, suggest that the momentum will likely be maintained over the near term, notes the index report.

“The civil construction survey is the best non-official gauge for infrastructure investment,” says Mkhwanazi.

“On that score, the survey results are quite positive.

“However, the spread of activity seems to be clustered in renewable energy generation and mining, which is not bad – or even surprising – but does suggest that key reforms in other areas of the economy are still lacking.”