Signs of confidence and activity in the country’s construction sector were waning. Not only was confidence low but incomes also took a knock, dropping 2.4% between 2017 and 2020
Not only was confidence low but incomes also took a knock, dropping 2.4% between 2017 and 2020. This is according to Stats SA’s report, which measures activity in the sector over a three-year period.
The ACI composite index – compiled by economist Roelof Botha on behalf of Afrimat – records levels of activity within the building and construction sectors. “Ever since the ACI recorded its highest level yet, namely 143.8 during the third quarter of 2016, a combination of high interest rates, low economic growth, state capture, public sector incompetence and high levels of violent crime have dampened activity in the country’s construction sector,” he added.
“We are seeing a recovery in the core building sector but it’s largely due to the rebuilding that is happening in KwaZulu-Natal or the intention of rebuilding after the floods, as well as the ongoing conversion of the office space into residential units. So, it’s not large projects, but small and specialised projects that we’re seeing at the moment.”
Botha said, in the first quarter of 2019, employment was on an index value of 129.9 and now it was at 104 points. “In the first quarter of 2019, there were over 1 339 000 people employed in construction and in the first quarter of 2022 that number was significantly down, to 1 073 000 – it’s a loss of 266 000 jobs; it’s terrible, it’s absolutely terrible.”