While gross fixed capital formation (GFCF) data had already shown a moderate outlook for construction investment in Q1 2025, more detailed quarterly financial statistics released for December 2025 paint a contrasting picture, revealing a strong 21.2% year-on-year increase in construction sector turnover, reaching R90 billion. This growth was driven largely by medium-sized enterprises, which saw an 85% rise in turnover, while smaller firms continued to struggle with a 48% decline. Despite the improved turnover figures, profit margins remained under pressure across the board, with larger firms reporting a cumulative loss of 0.4%, and smaller enterprises seeing a deterioration in margins. The financial statistics in our view, provide a more accurate view of industry performance by excluding the distortive effect of imported capital goods present in GFCF estimates. For more details please contact Industry Insight, or click here to download the accompanying dashboard (available to subscribers only).
