After two positive quarters, figures released in the latest BMF Builders Merchants Building Index (BMBI) show a small decline in sales performance in the third quarter.

The downturn underscores growing pessimism within the sector about future market activity for the remainder of 2025 and into 2026.

Looking at the Quarter as a whole, year-on-year total value sales in Q3 2025 were marginally lower than the same period in 2024. With no difference in trading days between the two periods, Total builders' merchants value sales in Q3 2025 were -0.1% lower than Q3 2024. Volume sales increased by +0.7% but prices were down by -0.8%.

Value sales increased in eight of 12 product categories, led by Renewables and Water Management, which increased by +6.0%. Timber and Joinery Products, the second largest category, increased by +2.1% outperforming the total market, but the largest category, Heavy Building Materials, at -1.7%, was one of four categories to underperform, with volume and average price down by -0.4% and -1.3% respectively.

Value sales in Q3 2025 were weaker than in the second quarter of the year. A comparison shows total value sales in the latest three months were -1.2% lower than in the previous three months. Total volume sales fell by -1.0%, and prices were down by -0.8%. With four more trading days in Q3 2025, like-for-like value sales were -7.3% lower than the previous quarter.

By value, nine of the 12 categories sold more, led by Plumbing, Heating & Electrical at +3.2%.  Landscaping, a seasonal category, proved the weakest, with value sales falling by -13.8%. Once again Timber and Joinery Products (+1.6%) performed better than the total market, while Heavy Building Materials (-1.2%) was on par.

Total builders' merchants value sales in the nine months January to September 2025 were +1.2% higher than in the same period in 2024.  The increase was driven by volume (+2.8%), while prices fell by -1.6%. With one less trading day in 2025, like-for-like value sales increased by +1.7%.

By value, ten of the 12 categories sold more in the first nine months of the year, led by one of the smallest categories, Renewables & Water Saving (+7.4%). Timber & Joinery Products (+1.5%) performed better than Total Builders' Merchants, but the largest category, Heavy Building Materials (+0.9%) fell below the average. Decorating (-2.8%) and Workwear & Safetywear (-0.7%) were the weakest categories.

Total value sales in the year October 2024 to September 2025, were up +0.8% against the same period a year earlier, with no difference in trading days. Total volume sales were up by +2.7%, while prices decreased by -1.9%.  

Emile van der Ryst, Key Account Manager – Trade & DIY at NiQ GfK said: “The pessimism in the sector is aligned with most macroeconomic indicators, with uncertainty around government budgets and policies as a key component.

"Geopolitical tensions continue to play a role, while a predicted stock market correction due to AI has started moving to the forefront.  The fourth quarter is expected to be challenging, with confidence in market conditions continuing to deteriorate.”

John Newcomb, CEO of the BMF said: “This proved to be a difficult quarter, with concerns about the UK economic outlook and high levels of uncertainty ahead of the autumn budget limiting growth. Unfortunately, the budget didn’t provide the hoped-for incentives to spark the housing market. While we expect conditions to improve in 2026, significant growth is unlikely until the second half of the year, when interest rates are expected to be lower.”