Afrimat’s construction index lifts in third quarter
The index, compiled by economist Roelof Botha, has finally seen a reversal of a four-quarter trend of decline
Open-pit mining and building material supplier Afrimat said on Thursday there was still life left in SA's ailing construction sector, with its measure of building activity rising 5.1% in the third quarter of 2019 compared to the second.
The index, compiled by economist Roelof Botha, has finally seen a reversal of a four-quarter trend of decline, with Afrimat saying growth should gain momentum in 2020 after solid growth of capital formation since the end of March.
“It is clear, therefore, that there is still some life in the construction sector, with improved levels of activity having been recorded since the first quarter of 2019 in the values of buildings completed, building plans passed and both the value and volume of building materials produced,” said Botha.
Constituent indicators within the index include salaries and wages in the construction sector, the value of buildings completed, sales of building materials, as well as passing of building plans.
Building materials volumes led the increase, rising 11.9%. The value of buildings completed led the declines, falling 12%.
Salaries and wages fell 2.2%, while the value of building plans passed rose 9.5%.