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Construction product sales experience growth in third quarter of 2016

Construction product sales experience growth in third quarter of 2016

UK sales of construction products and materials saw an improvement during the third quarter of 2016, according to the latest industry figures.

The latest State of Trade Survey from the Construction Product Association (CPA) has indicated that 26 per cent of heavy side firms reported a quarter-on-quarter rise in sales in Q3 -  a positive figure, albeit lower than the 52 per cent balance recorded in Q2. 

Among light side companies, the performance was even better, with around half seeing their sales improve during the quarter, which was the highest balance since the first quarter of 2015 Q1 and an increase from 38 per cent in the second quarter of this year. This means that across the industry as a whole, sales have now increased for 14 consecutive quarters.

On an annual basis, 68 per cent of heavy side firms reported that sales had increased in the third quarter, while 60 per cent of light side companies said the same. In terms of organisations expecting a rise in sales for the fourth quarter, the proportions stood at 45 per cent and 67 per cent respectively; for the full year, they came to 38 per cent and 33 per cent.

This shows that many of the Brexit-inspired negative sentiments that depressed trading performance and confidence levels across the industry are starting to ease to some degree.

CPA senior economist Rebecca Larkin said: "Construction product manufacturers reported an increase in sales during Q3, suggesting that construction activity remained resilient following initial uncertainty in the run-up to, and immediately after, the EU referendum in June."

She added: "In contrast to pre-referendum pessimism evident in manufacturers' forward-looking views in last quarter's survey, expectations for near-term sales turned markedly higher in Q3."

Image credit: iStock

 

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