Q4 builders merchant sales figures confirm slowdown

Total sales values in Q4 were 13.9% lower than in Q3 2022, while volume sales dropped by 18.3%, but prices increased by 5.4%. 

With five less trading days in Q4, like-for-like sales values, adjusted for the difference in trading days, were down by 6.6%.

The largest two product categories both recorded double digit falls, with heavy building materials down by 13.7% and timber & joinery down by 16.6%. The seasonal category of landscaping saw the largest fall at 33.6%.

Comparing  the last three months of 2022 with the same quarter in 2021 found total sales in Q4 2022 were up by 2.9%. This was, however, largely price driven with volume sales down by 11.6% and prices up by 16.4%.  

Ten of the 12 categories saw sales values increase year on year, with kitchens & bathrooms up by 14.4% and heavy building materials increasing by 8.6%.

Landscaping (-5.9%) and timber & joinery products (-11.5%) were the only categories to sell less in Q4 2022 over Q4 2021.

For the full year, the builders merchants sector saw value growth against 2021 of +6.9%, driven by price growth of +16.2% and a volume decline of -8.0%. All categories saw value growth apart from timber & joinery, down by -2.2% and landscaping down by -0.6%.

John Newcomb, CEO of the BMF, said 2023 forecasts predict a further slowdown in the first half of the year, with a recovery in the second half.