FNB/BER said 90percent of respondents were dissatisfied with prevailing business conditions on weaker activity growth, which had weighed on profitability.
Siphamandla Mkhwanazi, a property economist at FNB, said the decline was supported by a slowdown in construction activity, and contractors should brace themselves for a continuation of the current weak demand.
“It’s not surprising that the prospects for work are downbeat given the state of the fiscus and the resultant reduction in infrastructure investment by the public sector. In addition, the spike in private sector construction work seen in the official numbers of late may not be sustainable,” said Mkhwanazi.
Finance Minister Tito Mboweni in his Budget Speech said the government was prioritising resources towards the president’s infrastructure fund and away from the wage bill.