https://www.engineeringnews.co.za
Africa|Business|Civils|Construction|Energy|Environment|Infrastructure|Road|Water|Infrastructure
Africa|Business|Civils|Construction|Energy|Environment|Infrastructure|Road|Water|Infrastructure
africa|business|civils|construction|energy|environment|infrastructure|road|water|infrastructure

Civil Confidence Index improves for fourth consecutive quarter

14th April 2023

By: Irma Venter

Creamer Media Senior Deputy Editor

     

Font size: - +

The First National Bank (FNB)/Bureau for Economic Research (BER) Civil Confidence Index increased to a more than six-year high of 42 in the first quarter, up from 31 in the fourth quarter of last year.

Business confidence was boosted by better activity in the civils sector.

Sentiment has now improved for four consecutive quarters.

The current level of the index means that slightly less than 60% of respondents were dissatisfied with prevailing business conditions.

There were already signs of a less constrained environment towards the end of last year.

Statistics South Africa reported a 1.2% yearly decline in the real value of construction works in the fourth quarter of last year, from a yearly contraction of 3.1% in the third quarter.

“The survey results point to a further improvement, possibly an annual expansion in construction works during the first quarter of 2023,” says FNB senior economist Siphamandla Mkhwanazi.

“Importantly, however, is that this comes off an extremely low base.”

The higher activity also boosted overall profitability.

“Civil contractors have experienced significant profit margin pressure over the past few years. This seems to have eased somewhat [in the first] quarter, adding to the more upbeat mood,” notes Mkhwanazi.

Looking ahead, the availability of work is predicted to continue trending higher.

In addition to respondents’ own upbeat expectations for activity next quarter, the rating of insufficient demand for new work as a business constraint – a proxy for order books – fell to its lowest level since 2014.

“Anecdotally, there does seem to be an increase in tendering activity in the public sector related to water and road infrastructure in particular,” says Mkhwanazi.

“Assuming these tenders are awarded, it will greatly boost construction work over the next few quarters. In the private sector, investment in alternative energy sources is buoyant.”

The FNB/BER civil confidence index can vary between a maximum of 100 (which indicates that all respondents were satisfied with prevailing business conditions) and a minimum of zero (indicating that all respondents were dissatisfied).

Edited by Martin Zhuwakinyu
Creamer Media Senior Deputy Editor

Comments

Showroom

ESAB showroom image
ESAB South Africa

ESAB South Arica, the leading supplier of high-end welding and cutting products to the Southern African industrial market is based in...

VISIT SHOWROOM 
Flameblock
Flameblock

FlameBlock is a proudly South African company that engineers, manufactures and supplies fire intumescent and retardant products to the fire...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.432 0.48s - 139pq - 2rq
Subscribe Now