Latest monthly sales indicators show sales of building materials rose 1.9% for July-September, compared with the same quarter a year before, and by 8.9% against the previous three months.
However, the BMF’s 12-month comparator indicates the national figure shows a 1.6% fall for the 12 months to September with marginal improvements in just four regions.
Unusually, third-quarter sales in Greater London were the weakest in the country, with merchants reporting a quarterly reduction of 5.1% year on year. Wales had the strongest results with a quarterly increase of 13.8%.
“It is clear that construction is lagging behind other industries in coming out of recession, largely due to the financial constraints limiting building activity and the housing market,” said BMF secretary Peter Matthews.
“Mortgage lending is running at about 30% of average levels, which impacts on housebuilding and the home improvement market, added to which lenders are treating smaller building companies as social pariahs and refusing them lines of credit.
“If the situation is to improve in the foreseeable future we need more than just the Bank of England’s lacklustre Funding for Lending scheme to start lending again.”
