Builders Merchants Building Index reveals positive news but the outlook is far from certain.
Figures released in the latest Builders Merchnats Federation Builders Merchants Building Index confirm sales growth for the second successive quarter, following two years of consistent declines, but the outlook is far from certain.
Quarter 2 2025 v Quarter 2 2024
Looking at the Quarter as a whole, year-on-year total value sales in Q1 2025 grew by +2.8% on the same period in 2024. With one less trading day this year, like-for-like value sales (which take account of trading day differences) were +4.5% higher.
Volume was the key driver, with total volume sales increased by +4.0%, while prices fell -1.1%.
Value sales increased in nine of 12 product categories. The performance of the largest category, Heavy Building Materials (+2.7%) was in line with the overall market, with volumes up by 4.2%, and average price declining by 1.4%. Looking at the underlying data, both bricks and aggregates achieved noticeable volume growth. Aggregates had the largest impact on the average price decline.
Timber & Joinery Products, the second largest category, outperformed the total market with sales value increasing by +3.7% against Q2 2024. At the other end of the scale, Decorating recorded the weakest performance (-2.0%).
Quarter 2 2025 v Quarter 1 2025
A comparison of value growth in Q2 2025 with Q1 2025 shows total value sales in the latest three months were +11.7% higher than in the previous three months. Total volume sales increased by +13.9%, and prices were down by -2.0%.
With two less trading days in Q2 2025, like-for-like value sales were +15.3% higher than the previous quarter.
Once again, nine of the 12 categories sold more, led by the seasonal category of Landscaping, where value sales increased by +46.8%, no doubt helped by good weather throughout the quarter. Fencing & gates and decking were the best-performing sub-categories here.
The performance of two largest categories, Heavy Building Materials (+11.1%) and Timber & Joinery Products (+11.0%) was slightly behind the market average.
Year to date vs last year
January-June 2025 v January-June 2024
Two consecutive quarters of growth resulted in value growth of +1.9% for the first six months of 2025 over the first half of 2024. This was driven by increased volume (+4.0%), as price was down by -2.0%.
With one less trading day in 2025, like-for-like value sales increased by +2.7%.
By value, ten of the 12 categories sold more in H1, with the largest category, Heavy Building Materials (+2.4%), outperforming the total market. Timber & Joinery Products increased by +1.2% in the first half of the year. Kitchens & Bathrooms (-1.4%) and Decorating (-2.5%) were the weakest categories.
Latest 12 months v last year
(July 2024-June 2025 v July 2023-June 2024)
Total value sales in the year July 2024 to June 2025, at -0.1%, show little improvement on the previous 12 month period, although volumes increased slightly. Total volume sales were up by +1.7%, while prices decreased by -1.6%.
With one more trading day in the latest period, like-for-like value sales, at -0.3% were slightly lower.
Value sales increased in seven of 12 categories, led by Tools (+4.4%), Workwear & Safetywear (+4.0%) and Services (+4.0%). Heavy Building Materials (0.1%) was on a par with the Total Builders Merchants average, while Timber & Joinery Products (-1.4%) was one of the categories that fell behind, the weakest being Renewables & Water Saving at -7.2%.
Emile van der Ryst, Key Account Manager – Trade & DIY at NiQ GfK said: “Donald Trump’s wide-ranging tariffs, announced at the start of the Quarter, added another layer of uncertainty and complexity on both the UK and global economy. Even those not directly affected, like Builders Merchants, feel their impact. Within this context, recent performance has been promising. Conditions, however, are still challenging. While there has been cautious optimism around the sector, the reality and impact of economic pressures could erode expected growth for the remainder of 2025.”
John Newcomb, CEO of the BMF said: “I’ve visited merchants in different parts of the country in recent weeks, and the most common description of current trading conditions is ‘tough’. Business is out there, but there is a lot of competition to win it, and the market is treating signs of recovery as tentative. It seems that everyone is waiting for the confidence to commit to new projects. When consumers and businesses feel optimistic about the economy, they are more likely to spend and invest, fuelling growth and job creation. The current climate of uncertainty is constraining the conditions required for sustained growth.”
