Oct 4 2006
Construction product sales have strengthened during the last three months, exceeding UK manufacturers’ expectations, according to latest figures from the Construction Products Association (CPA). The CPA's Activity Barometer Survey, just issued, records a score of 68, firmly above the 50 ‘no change’ mark. The improvement in sales volumes follows a period of little improvement during the first half of the year after the decline in output seen during 2005. Manufacturers anticipate a further strengthening in sales growth during the coming three months.
Commenting on the results of the survey, the CPA Economics Director, Allan Wilén said: "The survey findings confirm that the construction industry is continuing to recover from the poor results seen last year. Sales of light side products are leading the upturn, with an exceptionally strong reading of 75, as firms that supply DIY and consumer related products have reported a recovery in orders during July after the World Cup disrupted sales in June. However, encouragingly, heavy side manufacturers have also reported a marked improvement in their sales volumes albeit against a poor third quarter of 2005".
Mr Wilén added: “Looking ahead light side firms remain especially positive, both for the final quarter of 2006 and the coming twelve months. Firms report that new Building Regulations that came into force from this April have started to lift the sales of energy savings products; a trend that is anticipated to gather momentum over the next 12 months as a growing proportion of the buildings under construction are built to the new regulations. In contrast heavy side firms remain relatively cautious, with the slow progress of road construction plans and other infrastructure projects acting as a drag on growth.
"There are indications that improved consumer confidence is beginning to lift private sector activity and we anticipate that stronger economic growth should underpin industry into 2007. However, the position remains delicate and slow public sector investment clearly remains a brake on the construction products industry. Improved delivery of promised investment from Government would make all the difference."