Sales of construction products rose in Q1 and are expected to rise even further during Q2 and over the next 12 months, according to a survey released today (28 April).
The Construction Products Association’s latest State of Trade Survey also indicates that exports are anticipated to rise over the next year.
Seventy-six per cent of construction product manufacturing firms, on balance, reported a rise in sales in Q1 compared with the previous quarter, while 85% of product manufacturers reported that they anticipate sales rising over the coming year.
Dr Noble Francis, economics director at the Construction Products Association, said: “Construction product sales have risen for the fourth consecutive quarter. Over three-quarters of product manufacturers, on balance, reported sales rising in Q1 compared with the previous quarter. This growth was not just driven by house building. Private sector offices and new infrastructure are also rising, adding to the recovery in the housing sector.
“Looking forward, product manufacturers anticipate the construction recovery to continue in Q2 and over the next year, again due to growth in housing, commercial and infrastructure. As a consequence, 86% of firms, on balance, expect sales to rise in the next 12 months.
“Exports of construction products rose in Q1 and industry is even more optimistic looking forward. With prospects improving in the Eurozone, 38% of heavy side firms and 61% of light side firms anticipate sales rising over the coming year despite the rising value of Sterling.
“The key concern for manufacturers in Q1 was rising costs. 65% of heavy side manufacturers and 54% of light side manufacturers reported that costs rose compared with a year earlier. These cost rises were due to energy and transport fuel costs, exacerbated by more recent rises in wages and salaries.”