Despite some uncertainties, Q4 volumes were stable overall, albeit with some purchases driven by considerations of price inflation in January. The UK’s economic outlook remains uncertain, although the predicted high interest rates of over 6% seem to have stabilised for now, while inflation has also slightly decreased from its peak in October.

Notably, the December PMI data showed the first decrease in employment since January 2021 and contractor purchases fell for the first time in three months due to lower workloads, marking its steepest rate in more than two and a half years.

Construction output is also forecast to decrease by 4.7% in 2023, following two years of growth exceeding pre-pandemic levels. This is due to a multitude of factors, including the UK’s economic challenges, declining real household incomes and high interest rates. Therefore, the largest decrease in construction activity is likely to be in sectors heavily reliant on households, such as new build private housing and domestic RMI.

Despite the anticipated decrease in construction output, the shortage of skilled labour in the industry remains a pressing issue and must still be prioritised. The construction industry relies heavily on a skilled workforce to complete projects effectively and efficiently and failure to address this shortage could have a significant impact on its ability to recover from the current economic downturn and achieve sustainable growth in the future.

To drive growth amid limited government activity and a subdued economic forecast, innovation is key, and we must provide valuable and efficient solutions to customers. Despite the difficulties we are facing, the market’s fundamental needs still offer reason for optimism. We are dedicated to serving customer needs and working across the supply chain to overcome obstacles.

To enable us to provide enhanced support to customers during these times, the collective strength of our brands British Gypsum, Celotex and Isover allows us to provide a comprehensive insight into the overall market, helping customers to prepare for and respond to market needs.

We are confident in our ability to adapt to changing market conditions and remain committed to providing high-performance drylining and insulation solutions for our customers, both now and in the future.