Modest growth for Plumbing Heating & Electrical sales in Q3

In his Autumn Statement, Chancellor Hammond said the UK economy has confounded commentators with its strength and resilience. So too have Britain’s builders and contractors.

The Builders Merchants Building Index (BMBI) which tracks builders’ merchants’ sales to builders and contractors using GfK data, reports September sales up 3.2% year on year, and Q3 up 3.8% on the same quarter last year. Plumbing Heating & Electrical products grew more slowly, up 0.2% year on year in September and 1.1% ahead in Q3.

John Newcomb, Managing Director of the BMF said: “Sales in September continue to be strong, building on an excellent performance over the first nine months of 2016. Sales are up 5.1% on the first nine months of 2015, bucking the construction trends identified by the Office of National Statistics (ONS).”

Initial ONS figures are estimates based on around 40% of the data and subject to regular revision as data comes in. The latest ONS figures have been revised up to 0.2% for September and 0.1% for Q3 compared to 2015.

Paul Rivett, Managing Director Heatrae Sadia, BMBI’s Expert for Water Heating says: “The uncertainty leading up to the Brexit referendum has continued, stifling investment in current and new projects. Many businesses, including merchants and distributors, have lowering stock holding to reduce working capital. Looking forward, I believe the market will be subdued next year, either flat or up to 2-3% down on 2016.

“Theresa May’s recent departmental changes have brought energy, commerce and industry back together after an eight year separation, which makes perfect sense. It’s an opportunity for Government to introduce a more joined up approach to policy, and cut the administrative red tape which naturally occurs when responsibility is spread over multiple departments.

“The new Department of Business, Energy and Industrial Strategy reunites those who set regulations and those who enforce them. With this comes a fresh opportunity to ensure that standards set by the Government are realised in the marketplace.”

BMBI Experts speak exclusively for their markets, explaining trends, issues and opportunities.