Over the last five years (since March 2017) the industry has shed R112bn in turnover, currently at similar levels reported in 2014. It would seem the recovery in 2021 may have been short-lived, as indicators in the 1st quarter of 2022 paint a rather dismal picture. Not only has the industry failed to recover to pre-Covid levels, but it in fact also weakened to similar levels experienced during Covid-19 in 2020. With weaker turnover, lower profitability, and a slowdown in the value of work in progress things are looking increasingly challenging for the sector.
Since our last report, when we felt somewhat encouraged by the increased focus on infrastructure expenditure by various government departments, the risks to our cautiously optimistic view now weighs heavily on the downside.
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| PULSE Quarterly Financial Statistics 2022Q1 | |
