The Builders Merchants Federation has reported merchants are being hit “extremely hard” by recession according to their latest figures.
The Q4 figures (Oct-Dec 2008) show a sales drop of 19.9% compared with the same quarter in 2007. Worryingly the rate of sales decline seems to be increasing dramatically as well, with a drop of 17.5% between Q3 and Q4 compared with a slide of 3.8% between Q2 and Q3.
The report, compiled by the BMF shows that all regions are reporting significant falls. Greater London and the southeast were least affected, although the regions still saw respective falls of 7.1% and 12.7% compared with Q4 2007.
The East Midlands was worst hit with a drop of 27.9%, followed by East Anglia with 27%. All figures are adjusted for product price inflation and differences in trading days.
BMF secretary Peter Matthews said: “Unfortunately the figures confirm what everyone throughout the building materials supply chain is experiencing fist hand. The UK is in recession and the building sector has been particularly badly hit as a result of the credit crunch and the stalling of the housing market.”