Construction product sales continue to grow
Domestic construction product sales continued to grow in third quarter but exports hit by Eurozone woes
THE Construction Products Association’s latest State of Trade Survey reports continued growth in UK sales of construction products in the third quarter (Q3) of 2014.
In addition, manufacturers reported optimism going forward and the survey highlights anticipated domestic sales growth over the next quarter and the next year. However, manufacturers also suffered falls in export sales during Q3.
Dr Noble Francis, economics director at the Construction Products Association, said: ‘The latest results highlight the strength of the UK economy in Q3, with private sector construction and manufacturing both benefitting.
‘A rise in third-quarter sales was reported by 78% of heavy-side firms and 50% of light-side firms, compared with the previous quarter, and all firms reported a rise in sales compared with 12 months ago.
‘Furthermore, as recovery in the construction industry has become more broad-based – across the private housing, commercial and infrastructure sectors – growth in construction products has become more sustainable and manufacturers are optimistic going forward.
‘Rising sales in the coming years are anticipated by 72% of heavy-side product manufacturers and 90% of light-side product manufacturers.
‘While product manufacturers reported growth in domestic sales, 27% of heavy-side manufacturers suffered falls in export sales during Q3, and 40% of manufacturers reported that the key reason for this was the poor economic performance of the Eurozone, the key export destination for construction products.
‘A further 20% of manufacturers reported that the appreciation of Sterling was a key factor in the fall in export sales during Q3.’