Cement sales, which have been declining since the beginning of 2007, continue to reflect the contraction in the building industry.
Figures released by the Cement and Concrete Institute (C&CI) have revealed that in March of this year, the contraction in monthly average cement sales per day was almost 10% compared with a year earlier.
John Lottering, property economist of Rode & Associates, says: ‘Cement sales are an excellent indicator of building activity because little cement is used for civil construction.’
Just three years ago, this industry was experiencing growth of more than 15%.
Local cement sales were indeed an indication of the global market place: in March of this year, cement exports were reported to have dropped by 94% to 1 868t, compared with the 31 638t exported in March 2008.
‘As for the situation at home,’ says Lottering, ‘the latest results will in turn be echoed in the building industry’s ever-tightening competition among contractors for tenders, lower profit margins and, ultimately, waning building-cost inflation. It’s an ill wind that blows nobody good.’