Builders Merchants Journal – BMJ Publishing to Builders Merchants and the UK merchanting industry for more than 95 years
The Builders Merchant Building Index (BMBI) reports that compared to the same period in 2022, Q3 2023 total volume sales to builders and trades fell -10.5% from Britain’s Builders’ Merchants.
Value sales were down -3.3%, as prices rose +8.0%. There was no difference in trading days. The three largest categories all sold less: Heavy Building Materials (-1.5%), Landscaping (-7.0%) and Timber & Joinery Products (-13.1%).
Mike Rigby, CEO of MRA Research who produce the report, said: “Q3 was a wash out for the building industry. From the unrelenting rain which put a halt to outdoor work in August and September, sending homeowners abroad in search of the sun, to the drop in housebuilding output which fell to its lowest levels since Covid, not much was happening.
“GfK’s Consumer Confidence Index also fell sharply from -21 to -30 in October defying expectations of continued improvement to -20 as the high cost of living and economic uncertainties weighed on sentiment. But with inflation dropping more than forecast, from 6.7% in September to 4.6% in October, a year after the dismal days of Prime Minister Liz Truss.”
Quarter-on-quarter
total value sales dipped -1.4% in Q3 2023 compared with April to June 2023. Volume sales dropped -2.1% and prices edged up +0.8%. With four more trading days in the most recent period, like-for-like sales were -7.5% lower in July to September compared to Q2.
Nine of the twelve categories had higher value sales quarter-on-quarter, with Kitchens & Bathrooms (+7.5%) increasing the most. Landscaping (-13.3%) was weakest.
Compared to August, total merchant September value sales were down -3.4%. Volume (-2.7%) and price (-0.7%) were also down. With one less trading day in September, like-for-like sales were +1.2% higher. Only three categories sold more: Workwear & Safetywear (+2.7%), Plumbing, Heating & Electrical (+2.3%) and Kitchens & Bathrooms (+0.8%). Seasonal category Landscaping (-9.2%) contracted the most.
Rigby added: “There’s a lot of resilience in the private housing repair, maintain and improve sector. If you doubt it, try finding quality trades who are not busy and booked into 2024, for your home improvement project.”
