Sa Construction Sentiment Slips In Q1 On Weak Economic Growth

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sa construction sentiment slips in q1 on weak economic growth

The weak economic growth during the first quarter of this year was evident in the construction sector, with eight of the 10 constituent indicators of the Afrimat Construction Index (ACI) recording year-on-year declines with the index growth rate slipping to just below zero.

Afrimat, the JSE-listed mid-tier mining and materials company, released the findings of its ACI for the first quarter of 2024 yesterday.

The ACI, a composite index of the activity level within the building and construction sectors, is compiled by economist Dr Roelof Botha on behalf of Afrimat. The ACI recorded a level of 103.7 in the first quarter compared to 117.3 in the previous quarter, and 105.0 in the first quarter of 2023.

Botha said the 1.3% year-on-year decline in the ACI compared to the annualised 0.5% increase in the countrys gross domestic product (GDP), with a decline of almost 9% in the construction sectors value-added being of concern.

On the upside, the decrease was somewhat offset by the 10.1% year-on-year increase in the value of wholesale sales of construction materials, Botha said.