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• Create Date July 2, 2024
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Quarterly Financial Statistics Construction March 2024

While information related to gross fixed capital formation estimates 1for the 1st quarter of 2024 on construction investment has already been released with the release of the GDP estimates, the quarterly financial statistics released in March 2024 includes more detailed financial information on various sectors in the economy, including construction, that are important indicators for the sector.  It also provides a breakdown between large, medium and smaller players in the sector. The dataset includes 13 years historical data (from March 2010 - March 2024).  This dataset also provides a clearer view on actual turnover in the construction industry, as it excludes the contribution of imported machinery and equipment that is included in the gross fixed capital formation estimates.

According to financial estimates, the construction sector experienced a 2.9 percent year-on-year decrease in turnover during the first quarter of 2024, consistent with Gross Fixed Capital Formation (GFCF) estimates. Larger companies saw a significant decline of 7.6 percent year-on-year, while medium-sized companies demonstrated a notable increase of nearly 30 percent. Smaller companies faced considerable challenges, with turnover dropping by 16 percent year-on-year.

Overall, profit margins across the industry were under pressure, with the average margin decreasing to 2.8 percent from 4.8 percent in the previous quarter. Larger companies continued to struggle with very low margins, whereas medium-sized firms turned around an average loss of 1.4 percent in Q4 2023 to a positive margin of 3.1 percent in Q1 2024. In rand terms, the industry's profit declined by 58 percent compared to the same period in 2023, as the construction sector faced ongoing challenges. The moderate pace of recovery in the civil sector was significantly offset by a sharp decline in building market activity.

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