Good news and bad news for SA construction industry

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Poor economic growth is inhibiting the infrastructure programme, and poor infrastructure is inhibiting economic growth. Moneyweb EconomicGrowth RoyCokayne

There is good and bad news for South Africa’s beleaguered construction industry in the current data about civil contract awards and the value and number of projects out for tender. A report by construction market intelligence firm Industry Insight says the nominal value of civil contracts awarded improved by 36% in June following an equally strong increase in May, and was 25% higher in the first half of 2022.

However, the postponement rate has gradually increased to over 8% in the last three months “as poor economic growth inhibits the government’s infrastructure programme”. “Projects are placed on hold for various reasons but often financial constraints are to blame. “Community interference is another key factor delaying projects,” it said. Encouraging signs Industry Insight highlighted some interesting developments in July.

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Should we print more money to creat artificial growth. And try to balance that with economic growth or would inflation eat us for supper or show we accept growth comes at a price?

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