‘Overall, the sector is still on track for a much-improved performance for full year 2025 than the 6.1% drop recorded in 2024.’
Most civil construction workers remain dissatisfied with prevailing business conditions. The FNB/BER Civil Confidence Index for the third quarter of 2025 show that confidence recovered to 43, after dropping from 45 to 41 in the second quarter.
The index is used to measure whether people in the sector are happy with business conditions. This can vary between a maximum of 100, indicating that all respondents were satisfied with business conditions during that quarter, and a minimum of zero, indicating that all respondents were dissatisfied.
Business conditions can include growth in construction activity, profitability, and constraints. The findings of the third quarter were released on Tuesday, following a period of data collection from 6 August to 25 August 2025.
Decline in civil construction activity
Siphamandla Mkhwanazi, senior economist at FNB, said the uptick in sentiment contrasts with a significant decline in activity.
“While the activity index weakened considerably in 3Q2025 compared to the previous quarter, it remains close to its long-term average. Importantly, the index has held relatively high levels in recent quarters,” he added.
“Since it reflects annual growth, base effects may explain the lower reading. However, if this weaker level persists over the next two or three quarters, it would be a cause for concern.”
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There is still hope
Respondents to the survey include senior civil engineering estimators, artisans, handymen, construction managers, senior civil foremen, civil engineers, structural engineers, and other professionals.
Statistics South Africa showed that the real value of construction works contracted by only 0.3% on an annual basis in the second quarter of 2025, from a 3.2% decline in the first quarter. The survey results suggest a slightly more pronounced decrease in the third quarter.
“Overall, the sector is still on track for a much-improved performance for the full year 2025 than the 6.1% drop recorded in 2024,” said Mkhwanazi.
What the future holds
“Looking ahead, it remains prudent to monitor the risks to sentiment in the sector over the short- to medium-term,” said Mkhwanazi.
“These include persistent inefficiencies in tender adjudication, payment processes, project management, and crime, as highlighted by survey respondents.
“On a positive note, recent progress on key reforms in energy and logistics is encouraging, although it may take time to translate into increased activity in the sector.”
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