But the BMF’s Builder Merchants Building Index (BMBI) latest report on sales of building materials in the UK, once again underscores the impact of price inflation on the sector.
The timber & joinery product sector registered a 3% sales decrease in Q2, while landscaping
Saw a 6.3% reverse.
Kitchens & Bathrooms was the highest performing category, increasing by +18.5% in value.
A detailed comparison of Q2 2022 with Q2 2021, shows total builders merchant sales across all product categories increased by 4%, with one less trading day this year. Volume sales were 11.3% lower, while prices increased by +17.3%.
Looking at the first half of 2022 reveals a similar story, with a value growth figure of +10.1% compared against the same period in 2021. Drilling down, the market has seen first half price growth of +16.6%, versus a volume decline of -5.6%.
Q1 2022 pricing was heavily influenced by a timber & joinery year-on-year price increase of +36.9%, which dropped to +30.5% in Q2. Heavy building materials has now become the category under pressure, with annual price growth up from +11.8% in Q1 2022, to +18.3% in Q2.
“The negative effect of rampant inflation is starting to show with escalating input costs across fuel, energy, raw materials and wages impacting production costs and adding to existing material supply issues,” said John Newcomb, CEO of the Builders Merchants Federation.
“It is plain to see that the increase in sales values of building materials during the first half of the year has been driven by price inflation rather than volume growth. Regrettably, this pattern seems set to continue into 2023.”
Emile van der Ryst, senior client insight manager – Trade at GfK, said no immediate end was in sight to the spiralling costs.
“With UK inflation approaching double digits, the counterbalance between inflation and interest rates is increasingly difficult to control and will be the ultimate test for the next year or so.”