The construction sector in South Africa added over 100 000 new jobs in the second quarter of 2023, reflecting the resilience of the country’s economy. The Afrimat Construction Index (ACI) for the second quarter recorded growth across eight out of nine industry activity indicators when compared to the first quarter. The positive trend is attributed to increased public sector spending on capital formation, particularly in addressing infrastructure damage caused by state capture. The ACI, which is a composite index of activity within the building and construction sectors, is expected to continue its positive trend into the third quarter, driven in part by investments in renewable energy infrastructure. However, year-on-year growth remains modest, highlighting the need for macroeconomic policies to encourage further construction activity.
