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

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.