South Africa, South Korea Construction Contract Volumes Decline Q1 2018

Global construction sectors are facing varied challenges and slowdowns in mid-2025. South Africa's Afrimat Construction Index dropped by 2.6% year-on-year in Q1, hindered by poor government spending, restrictive monetary policy, and lingering effects of past state inefficiencies, pushing the sector into recession. Similarly, South Korea's construction contract volume fell 4.8% year-on-year in Q1, driven by a 13.4% decline in private sector contracts despite a 12% rise in public sector projects. Turkey’s construction sector confidence index also declined by 1.7% in June, with falling order books and weaker employment and sales price expectations indicating a pessimistic outlook. Macau’s construction industry growth is forecasted to decelerate from 5.6% in 2024 to 3.8% in 2025, impacted by a slowdown in the gaming sector, which heavily influences government revenues and economic forecasts. Despite these challenges, U.S. equipment financing shows resilience with a small borrowing dip but increasing confidence, signaling potential growth opportunities for sectors reliant on equipment leasing, including construction.