Construction sector ‘not out of the woods’ despite rise in fourth quarter
Afrimat index up for third consecutive quarter
The construction sector is "not out of the woods yet" despite the Afrimat index rising for the third consecutive quarter in the last three months of 2018, economist Roelof Botha warns. The 3.9% gain in the index, a composite indicator of the level of activity in the building and construction sectors, points to a recent recovery in building and construction activities in the country. The index, which is up 14.4% when compared to the first quarter of 2018, takes into consideration indicators such as employment, sales of building materials, salaries and wages, retail trade sales and building plans passed. Botha, who compiles the index on behalf of listed open-pit mining firm Afrimat, said there has been "a nice recovery after the sharp deterioration in the first quarter" of 2018, but warned that the sector is cyclical. Activity is typically low in the first quarter, while the last quarter of the year normally sees heightened activity. Compared to a year ago, the building and constructi...
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