Industry Insight has reported a slowdown in the construction industry’s growth, compared to 2014. Growth in Construction Sector was just 0.8% in the first quarter of this year; off the back of 3.5% growth in the 4th quarter of and 2.2% in the 3rd quarter. The overall decline in the trend seems to have been brought down by the non-residential sector, once again, with square metres of office spaces approved on average over the last year seems to be in negative territory this month with a rolling average of -10% from being 7.6% in February.
Their report also indicated that compensation for employees in the construction industry increased by 5.7 percent in current prices, compared with an average increase of 7.7% across all sectors.
- The month of May experienced a slight expansion in private sector building plans being passed.
- In March 2015 there were 5.1% more square metres of building plans being passed than in March 2014 showing some signs of expansion.
- This seems to have come from double the amount of square metres being passed in 2015 in square metres of shopping and retail spaces, a 104.4% expansion to be specific.
- When looking at the overall trend with the twelve month rolling average, the trend seems to be slowing somewhat with total building plans passed in South Africa slowing to an average growth rate of 1.1%.