Builders Merchants Federation says construction remains buoyant

The Builders Merchants Federation, which commissions the BMBI, said the figures seemed at odds with new Office for National Statistics (ONS) figures which suggest construction output decreased by 1.5% in August.

“We are surprised by the ONS figures as they do not reflect what we see happening in the building materials industry,” said BMF managing director, John Newcomb.

The new BMBI figures show sales up by 13.1% in August, with heavy building materials up by 14.1% and timber and joinery products up 11.8%.

Overall like-for-like sales (allowing for two extra trading days) were up 2.8%. Year to date sales grew 5.4%.

The BMF said ONS stats were a different and broader measure of the construction sector, but the contrast with BMBI figures, which relate to building materials, was still startling.

“We believe that the BMBI figures more accurately show the strength of the sector as they correlate to future output,” said Mr Newcomb.

“Put simply, for a brick to be laid, it first has to be supplied and purchased.

“There is lots of speculation on the impact of Brexit on the economy as a whole and on construction, so we are very encouraged to see sales growth of over 13% in August, which shows that our industry is still strong and in robust health.”