Britain’s builders’ merchants faced a challenging August with revenues dipping noticeably compared to last year.
- The Builders Merchant Building Index reported a 5.6% fall in value sales year-on-year in August 2024.
- Volume sales also decreased significantly by 5.7%, highlighting a reduced market demand.
- Heavy building materials and timber & joinery products experienced notable declines of 6.1% and 8.2%, respectively.
- Despite a slight increase in prices, like-for-like comparisons indicated a 1.1% downturn, compounded by fewer trading days.
August proved to be a tough month for Britain’s builders’ merchants as reported by the latest Builders Merchant Building Index. The industry witnessed a 5.6% decline in value sales when compared to August of the previous year, an indicator of the challenging market conditions currently being faced. This downturn in value sales was mirrored by a similar reduction in volume sales, which fell by 5.7%. Such decreases suggest that demand has softened significantly during this period.
Interestingly, the report notes a marginal price rise of 0.2% over the year, indicating that price increases provided little relief to falling sales volumes. The impact of one less trading day further added to the decreased takings, which were down by 1.1% on a like-for-like basis. Among the various categories, heavy building materials and timber & joinery products were the hardest hit, showing declines of 6.1% and 8.2%, respectively.
The month-on-month figures do not paint a better picture, with August’s results falling 8.1% lower than those of July. Volume sales similarly dropped by 9.2% during this period, while monthly price increments stood at 1.2%. Though it appears prices have crept up slightly, these increases have not compensated for the declines in both value and volume sales.
Overall, while some product categories demonstrated marginal improvement over the year, the collective figures suggest significant pressure on the market. This cumulative pressure is further weighed down by external economic factors and reduced trading opportunities.
Britain’s builders’ merchants continue to face a challenging economic climate, as evidenced by the August downturn in takings.
