Construction World January 2023

COMMENT

pace of recovery of gross fixed capital formation in the economy – in fact capital formation in the third quarter represented only 7,1% of GDP. This is significantly lower than the global average of 26% and according to the ACI, not vaguely significant for a country of some 60 million. Here's to a good 2023! Various articles in this issue look back at 2022 as we look forward to 2023. The construction industry experienced tough times during the COVID-19 pandemic and 2022 started with optimism of a (potential) new dawn. The Afrimat Construction Index (ACI) is South Africa’s most accurate indication of how the construction sector is faring – more so than individual barometers that often paint a worrying picture (as evident from some articles in this issue).

T he ACI is a composite index of the level of activity within the building and construction sectors and uses nine indicators to become a rather accurate barometer of activity in this sector. The ACI for the third quarter of 2022 illustrates that the resilience of the economy was also evident in the construction sector. Statistics SA recently released the latest gross domestic product data which shows a real growth rate of 1,6% (quarter-on quarter) for the economy as a whole. For the same period, the construction

industry showed a growth-rate of 3,1%. According to the ACI, only transport, storage and communication outperformed the construction sector in the period July to September. The ACI has now virtually recovered to levels before the COVID-19 pandemic. The index value is 123,4 - 24,4% higher than the base period which was the first quarter of 2011. At its height, the ACI had a value of above 140 (third quarter of 2016). Not everything about the ACI is positive though: it highlights the slow

Wilhelm du Plessis Editor

EDITOR & DEPUTY PUBLISHER Wilhelm du Plessis constr@crown.co.za ADVERTISING MANAGER Erna Oosthuizen ernao@crown.co.za LAYOUT & GRAPHIC ARTIST

PUBLISHER Karen Grant

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2 CONSTRUCTION WORLD JANUARY 2023