SME building and construction industry in the doldrums, says CIDB survey
9th April 2019
By: Irma Venter
Creamer Media Senior Deputy Editor
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The 2019 first quarter Construction Industry Development Board (CIDB) small and medium-sized enterprise (SME) Business Conditions Survey, released on Tuesday, suggests that the South African building and construction industry remains under pressure.
General building confidence declined by one index point to 33.
Grades 7 and 8 registered the sharpest drop in confidence in the newest survey, dropping from 40 to an almost six-year low of 23.
“The marked deterioration in sentiment among general building class [businesses] in grades 7 and 8 was largely driven by weaker activity growth,” says Skosana.
“This is alarming because at 31, close to 70% of respondents are dissatisfied with prevailing business conditions. Like with general building businesses, activity growth just isn’t forthcoming,” comments Skosana.
The other grades also registered marginal declines in sentiment.
On a provincial level, civil engineering businesses in the Eastern Cape and Western Cape experienced the sharpest deterioration in sentiment in the newest survey, to zero and 27 index points respectively.
A business confidence index can vary between zero (indicating an extreme lack of confidence) and 100 (indicating extreme confidence).
The 50-index-point mark is interpreted as neutral.
The fieldwork for the 2019 first quarter survey was conducted from January 28 to March 4