Findings by First National Bank and the Bureau for Economic Research indicate that South Africa’s civil construction activity seems to have turned the corner.
A report titled The State of the Civil Construction Industry states that the FNB/BER Civil Confidence Index rose to 31 in the last quarter (Q4) of the year.
In Q3 that figure was 24.
The report says that “conditions improved largely across the board, but the feedback regarding growth in construction activity was particularly upbeat”.
Moreover, the report adds that there are early signs that civil construction activity is poised for a more meaningful recovery in coming months.
The latest recorded level is the highest it’s been since Q1 in 2017.
The current level is especially remarkable considering that the index was at a low of nine at the beginning of the year.
However, the report also points out that despite the improvement, compared to the long-run average of 43, sentiment is still quite downbeat.
“Indeed, the current index level means that slightly less than 70% of respondents were dissatisfied with prevailing business conditions.”
