The ACI’s seasonally adjusted reading has increased for the third consecutive quarter, the first time this has occurred since the brief recession of 2020.

South Africa’s construction sector is showing tentative signs of recovery, with the latest Afrimat Construction Index (ACI) recording a third consecutive quarter of positive growth despite continued challenges facing the industry.

The ACI, released on Tuesday, increased by 0.3% year-on-year during the first quarter of 2026, supported by stronger construction activity, higher building completions, rising employment and improved sales of building materials.

Compiled quarterly by economist Dr Roelof Botha on behalf of Afrimat, the index serves as a composite measure of activity levels across the building and construction sectors.

Although growth remains modest, Botha said the latest results point to increasing stability in a sector that has endured years of subdued activity. The ACI’s seasonally adjusted reading has increased for the third consecutive quarter, the first time this has occurred since the brief recession of 2020.