Builders merchants sales bounced back after the ‘Beast from the East’ thanks to this year’s prolonged streak of hot weather, according to the latest stats from the Builders Merchant Building Index (BMBI).
Q2 sales jumped a significant 16.9% over Q1 sales. Furthermore, Q2 2018 outperformed Q2 last year, up 7.2% and the month of June 2018 was up 6.1% on June 2017. Year-to-date sales were up 4%.
The BMBI – compiled by GfK, BMF and MRA – revealed the winning and losing categories in terms of sales.
- Timber & joinery products rose significantly, to 126.2 in June 2018 (116.7 in June 2017).
- Tools rose to 113.33 in June 2018 (109.9 in June 2017)
- Workwear & Safetywear fell to 95.7 in June 2018 (99.4 in June 2017)
- Ironmongery fell marginally to 123.9 in June 2018 (124.5 in June 2017)
Richard Frankcom, Key Account Director at GfK, said: “Following the dramatic weather in quarter 1 delaying the usual end of quarter external work kick off, I have been expecting a strong quarter 2 performance; it did not disappoint, growing in value terms 7.2% year on year.
“Timber and Joinery also had a great quarter and had a major impact on total value growth this quarter, up 9.5% year on year with April delivering exceptional growth of 12.6%. Sheet Materials sub category was a big contributor, with its quarterly growth percentage hitting the high teens.
“Before we break out the champagne and fire the corks at those naysayers, we must be wary. Price inflation and one extra trading day this year in quarter two had an effect on growth. Nevertheless we should be content that the sector is still in good health.”