The construction industry has received a sign of possibly better times ahead, with the nominal estimated value of civil construction projects out to tender increasing by 42% in the second quarter of this year compared to the previous quarter.
David Metelerkamp, the senior economist at construction market intelligence firm Industry Insight, said the nominal estimated value of civil construction projects out to tender was up by “an encouraging” 38.6% on a year-on-year basis in the second quarter.
“Following some improvement in the estimated tender values during the last two quarters, the annual rate of decline measured over the last 12 months has turned positive and increased by 0.5% year-on-year.”
He added that the more robust quarter-on-quarter increase in the second quarter followed an improved, although moderate, performance in the first quarter of this year when estimated values increased by 1.8%.
Increase in R130m-plus projects
He said an increase in the number of Construction Industry Development Board (CIDB) Grade 9 projects, with a construction value exceeding R130 million, out to tender in the second quarter supported this growth.
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