The latest figures from the Builders Merchant Building Index (BMBI) have shown the total value sales from Britain’s Builders’ Merchants climbed +7.6% quarter-on-quarter in Q2 2023 compared to January to March 2023. Growth came from stronger volumes (+11.3%) as prices were -3.3% lower. With four less trading days in the period, like-for-like sales were +14.8% higher in Q2 than Q1.
Six of the 12 categories had higher value sales, with Landscaping (+47.3%) leading, followed by Heavy Building Materials (+9.0%). Timber & Joinery Products (+2.1%) grew more slowly than merchants overall, while Plumbing Heating and Electrical (-12.2%) and Workwear & Safetywear (-12.7%) were the weakest categories.
Value sales increased in nine of the 12 categories in Q2 2023 compared to the previous year with Renewables & Water Saving (+44.4%) ahead of the rest. Decorating (+12.3%), Plumbing, Heating & Electrical (+9.1%) and Ironmongery (+6.1%) also increased, and Heavy Building Materials (+0.5%) showed marginal value gain. Timber & Joinery Products (-16.3%) and Landscaping (-12.4%) both saw significant declines.
Mike Rigby, CEO of MRA Research who produce this report, said: “At the half-way point in the year, June has been somewhat of a turning point for the construction industry, with monthly output finally increasing after consecutive falls. This upturn is reflected in the positive growth in merchant sales recorded by the BMBI – both in the month-on-month numbers for June, and quarter-on-quarter figures – with increases driven by volume rather than price inflation.
“Finer weather may be playing its part in getting the country building again, but inflation is also starting to come down and consumer confidence has been going up since the lows of September 2022 and during most of the first half. The latest GfK Consumer Confidence Index for July runs counter to this trend with a sharp -6 point fall, so all eyes will be on the August confidence index which is due to be published shortly.”
