Activity in SA's construction industry picked up in the second quarter of 2023, boosted by improved public sector spending, and seemingly renewed interest in municipal infrastructure ahead of the 2024 national elections, according to the latest Afrimat Construction Index.
The index, compiled by economist Roelof Botha and released on Wednesday, rose 5.8% in the second quarter compared to the first, lifted by a strong growth in building plans passed and employment. On an annualised basis, it grew 0.6%, while SA's GDP contracted 0.1% in real terms. Speaking to News24, Botha said the figures masked pressure in parts of the industry, still beset by overly restrictive interest rates. However, increased public sector spending appears to be helping, along with a drive to renewables, as well as the upcoming elections.Get 14 days free to read all our investigative and in-depth journalism. Thereafter you will be billed R75 per month. You can cancel anytime and if you cancel within 14 days you won't be billed.