Builders’ Merchant Q3 Sales Volumes and Values Down

TOTAL VOLUME sales to builders and trades fell -10.5% in Q3 2023 in Builders’ Merchants, compared to the same period in 2022.

The value of sales was also down by -3.3% – even as prices rose by 8%. This is despite there being no difference in trading days in Q3 last year and this.

The three largest categories all sold less: Heavy Building Materials (-1.5%), Landscaping (-7.0%) and Timber & Joinery Products (-13.1%).

Q3 results weren’t helped by the monthly total value sales in September, which were -6.1% down on September 2022, with no difference in trading days. Volume sales fell -13.0% and prices rose +7.8%. Heavy Building Materials (-5.8%), Landscaping (-6.7%), and Timber & Joinery Products (-13.9%) all sold less.

Quarter-on-Quarter

Quarter-on-quarter, total value sales dipped -1.4% in Q3 2023 compared with April to June 2023. Volume sales dropped -2.1% and prices edged up +0.8%. With four more trading days in the most recent period, like-for-like sales were -7.5% lower in July to September compared to Q2.

Nine of the 12 categories had higher value sales quarter-on-quarter, with Kitchens & Bathrooms (+7.5%) increasing the most. Landscaping (-13.3%) was weakest.

Month-on-Month

Compared to August, total merchant September value sales were down -3.4%. Volume (-2.7%) and price (-0.7%) were also down. With one less trading day in September, like-for-like sales were +1.2% higher. Only three categories sold more: Workwear & Safetywear (+2.7%), Plumbing, Heating & Electrical (+2.3%) and Kitchens & Bathrooms (+0.8%). Seasonal category Landscaping (-9.2%) contracted the most.

Mike Rigby, CEO of MRA Research, said: “Quarter 3 was a wash out for the building industry. From the unrelenting rain which put a halt to outdoor work in August and September, to the drop in housebuilding output which fell to its lowest levels since Covid, not much was happening.”

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