Figures for Q3 2023 released in the latest BMF Builders Merchants Building Index (BMBI) show a fall in both volume and value sales over the same period last year.

The figures come as no surprise, mirroring much of what has been observed in the wider UK economy and its impact on the housing market.

Overall Q3 2023 volumes fell by -10.5% compared to Q3 2022.  Year on year total value sales for Q3 were down by -3.3%, with prices rising by +8.0%.

On a category level, Timber & Joinery (-13.1%) contributed most to the Q3 on Q3 decline in sales value.  But all three of the largest categories sold less with Landscaping down by -7.0% and Heavy Building Materials down by -1.5%.

Conversely, all the Lightside categories saw value growth with Decorating up by +10.5%, Plumbing Heating & Electrical (+9.1%) and Tools (+9.0%).  In most instances value growth was underlined by positive volume performance too.

Comparing sales in Q3 2023 with the second quarter of the year, total value sales dipped by -1.4% in Q3. Volume sales dropped by -2.1% and prices edged up by 0.8%.  With four more trading days in the most recent quarter, like for like sales were -7.5% lower in Q3 over Q2 2023.

Once again Lightside categories fared best, with Kitchens and Bathrooms seeing value growth of +7.5%, Workwear & Safetywear (+4.9%) and Decorating (+3.1%), likely helped by a stronger performance in RMI work.  Landscaping at -13.3% was the weakest performer.

The effect of rising prices and falling volumes can be seen in the full 12 month comparison between October 2022 to September 2023, where value sales were down by -1.9% on the same 12 month period in 2021-22.  Volume sales dropped by -13.0% while prices rose by +12.8%.

Emile van der Ryst, Senior Client Insight Manager – Trade at GfK, said: “Price growth understandably remains a key topic and it is worth unpacking this for the largest category, Heavy Building Materials. 

“ Over the past year the contribution of Bricks and Blocks which have a lower individual unit price has reduced while the contribution of higher priced items such as Aggregates, Cement, Insulation, Plaster and Plasterboard has increased, pushing up the average price of the category.

“Most prices had peaked by the start of the year, so year on year price comparisons should see a noticeable drop in the coming months.”                                                                                  

John Newcomb, CEO of the Builders Merchants Federation, added: “It has been another challenging quarter for the construction industry, particularly for the housebuilding sector and we can see this reflected in the Q3 BMBI results. 

“Domestic RMI work has held up over the year providing some good news, but with higher interest rates set to remain the norm, it may be some time before the market returns to volume growth.”