Construction sentiment ticks up despite less activity
The Civil Confidence Index compiled by FNB and the Bureau for Economic Research has increased to a level of 43 in the third quarter of the year from 41 in the second quarter and 45 in the first quarter.
The current reading means that nearly 55% of respondents to the index survey are dissatisfied with prevailing business conditions in the civil construction sector.
According to FNB senior economist Siphamandla Mkhwanazi the business mood in the sector improved despite a marked weakness in activity growth, which is likely owing to base effects, with actual spending on civil construction unlikely to be as downbeat.
Mkhwanazi explains that, while the activity index weakened considerably in the third quarter compared with the prior quarter, it remains close to its long-term average.
Importantly, the index has held relatively high levels in recent quarters.
Since it reflects yearly growth, base effects may explain the lower reading, however, if this weaker level persists over the next two or three quarters, it would be cause for concern.
Statistics South Africa finds the real value of construction works decreased by 0.3% year-on-year in the second quarter, from a 3.2% decline in the first quarter.
The Civil Confidence Index survey results suggest a slightly more pronounced decrease in real value of construction works in the third quarter; however, the civil construction sector is on track for a much-improved performance in the full year, compared with 2024.
Respondents’ own expectations for work next quarter and the rating of insufficient new demand as a constraint to business operations (a proxy for order books) reiterate the stance that the availability of work is not yet a major concern.
Although the latter registered its highest level since the end of 2022 at 71, it merely returned to its long-term average.
Comments
Research Reports
Projects
Latest News
Showroom
Rittal is a world leading provider of top-quality integrated systems for enclosures, power distribution, climate control, IT infrastructure and...
VISIT SHOWROOM
Immersive Technologies is the world's largest, proven and tested supplier of simulator training solutions to the global resources industry.
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
