The First National Bank (FNB)/Bureau for Economic Research Civil Confidence Index decreased to 44 points in the second quarter, from an eight-year high of 47 in the first quarter.
While slightly lower, activity growth remained well supported, while the pipeline of work improved noticeably, FNB reports.
“Projects related to renewable energy have continued to sustain civil construction activity; however, there seems to be a shift away from predominantly solar projects to wind,” FNB senior economist Siphamandla Mkhwanazi says.
He also points out that, while the index is still above the long-term average, sentiment remains relatively low.
“Given the underlying conditions, especially activity, confidence should be higher.
“However, uncertainty regarding the political environment and the impact of crime, corruption and government inefficiency is likely weighing on business confidence,” he notes.