BMBI finds Q2 sales slowing at UK builders' merchants
Figures for Q2 2019 just released in the BMF’s
Builders Merchants Building Index (BMBI) report the first negative growth in sales through UK builders merchants since data collection began in 2014.
In
value terms, total merchant sales for the Q2 2019 were down -1.2%
against the same period last year. The negative figures were
exacerbated by poor trading in June when sales were down by -8.1% year
on year, albeit with one less trading day in June 2019.
A
comparison of average sales per day (which removes the impact of trading
day differences) saw a small Q2 increase of 0.4% over the same period
last year.
Sales of Heavy Building Materials (the largest
category) declined by -1.6%, with the next largest category Timber &
Joinery also showing a slight decline at -0.1%. Plumbing, Heating
& Electrical product sales fell by -3.6%, while Kitchens &
Bathrooms was down -1.3%. Landscaping products, sales of which normally
rise significantly during the second quarter, was the best performing
category, rising by 1.2%.
Comparing Year to Date performance
figures for the first six months of 2019 against 2018 continues to show
value growth, but this has slowed to +2.1%, with value inflation the
likely driver rather than volume.
John Newcomb, BMF CEO,
said: “This is the first quarter we have seen a year on year decline
since the BMBI was launched in 2014 but we remain cautiously optimistic
that it will prove to be a blip. The slowdown may be weather related,
with weather patterns reversed in 2019 and unseasonably wet an windy
weather in June delaying work on site, or it may reflect an unwinding in
the stockpiling that boosted sales volumes in Q1. A third possibility
is that people are reluctant to commit to buying or improving their
homes until Brexit is resolved once and for all.”
Emile van
der Ryst, Senior Client Insight Manager – Trade, at GfK said: “While
business and consumer confidence has been impacted by continued Brexit
uncertainty in 2019, it is the effect that extreme weather has had on
the industry over the past 18 months that stands out. Q2 2018 sales
spiked due to external construction delays in Q1 following the Beast
from the East, so assessing Q2 2019 too harshly following a mild winter
would be wrong. Year to date figures still show value growth against
2018 with core sub-categories within the two main product areas driving
this performance. Bricks, Plasterboards, Insulation, Timber &
Flooring have all seen higher than market average increases during the
first half of the year, providing a positive indicator that the market
continues to plug away with better days hopefully ahead.”
For more information about the BMBI and other BMF market data click here