'Frightening': Afrimat's construction index slumps heavily as SA holds off on new homes | Business

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Activity in South Africa' construction industry slumped in the first quarter of the year, significantly underperforming the country's weak GDP growth as battered consumers held off on building new homes, according to the latest Afrimat Construction Index.

Activity in South Africa' construction industry slumped in the first quarter of the year, significantly underperforming the country's weak GDP growth as battered consumers held off on building new homes, according to the latest Afrimat Construction Index.

The index, compiled by economist Roelof Botha, fell 8.6% from the fourth quarter to just under 110 points in the first, weighed down by about a 20% crash in both the value of new building plans passed as well as in value of buildings completed. The index uses nine subindices including employment, wages and construction-related retail sales, with the first quarter figure meaning activity is just under 10% higher than the first quarter of 2011, which is used as a benchmark.Get 14 days free to read all our investigative and in-depth journalism. Thereafter you will be billed R75 per month. You can cancel anytime and if you cancel within 14 days you won't be billed.

 

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