According to Stats SA’s latest report on financial statistics by sector, turnover in the construction sector fell by 12.3 percent y-y in the 2nd quarter of 2022 to R70bn, following the (revised) 16.3 percent y-y decrease in Q1. Conditions in the 1st quarter were much worse than originally published, and revisions to the 2nd quarter is therefore highly likely. Larger enterprises (with an annual income of R273 million or higher) is bleeding as turnover fell by 35 percent in Q2 with a similar decrease reported in Q1. It was a better quarter for the medium size enterprises (likely linked to an increase by local governments having to spend their 4th quarter capital budgets), as turnover increased by 12.7 percent following a weak performance in Q1. Turnover is however overall, still lower by around 4.7 percent for the first six months. Turnover generated by smaller enterprises continue to outpace the rest, as turnover increased by 36 percent y-y in Q2, with a 50 percent increase in the first half of the year, likely linked to the renovations market, where a large percentage is not recorded in official data due to the nature of these projects. The fundamentals however supporting the smaller businesses remain unstable and will face headwinds from higher lending rates and deteriorating consumer and business confidence levels... read more in the review attached.
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| PULSE Quarterly Financial Statistics Construction 2nd Quarter 2022 | |
