Merchant Sales Down in Q3 2025 Amidst Increased Market Pessimism

Builders’ merchants’ value sales were down -0.1% in Q3 2025 compared to the previous year, according to the latest Builders Merchant Building Index (BMBI) report.

Volume sales were up +0.7% year-on-year, while prices were -0.8% lower. There was no difference in trading days.

Eight of the twelve categories sold more by value in Q3 2025 compared to the same quarter a year before, with Renewables & Water Saving (+6.0%) the best performing category.

Of the two biggest categories, Timber & Joinery Products (+2.1%) outperformed Total Builders Merchants, while Heavy Building Materials (-1.7%) was behind. Decorating (-3.3%) was weakest.

Sales Down Quarter-on-Quarter

Quarter-on-quarter builders’ merchants’ value sales for Q3 2025 were down -1.2% compared to the previous three-months (April to June 2025). Volume sales fell -1.0%, and prices eased -0.2%.

By value, nine of the twelve categories sold more with Plumbing, Heating & Electrical (+3.2%) ahead of the rest. Heavy Building Materials (-1.2%) was on par with Total Merchants, but Timber & Joinery Products (+1.6%) did better. Landscaping (-13.8%) was the weakest category.

With four more trading days in the most recent quarter, Q3 2025 like-for-like value sales were -7.3% lower than Q2 2025.

Increased Market Pessimism

Emile van der Ryst, Key Account Manager – Trade & DIY – NiQ GfK, commented: “Third quarter sales performance saw a very small decline amidst increased pessimism from within the sector about future market activity. This pessimism is aligned with most macroeconomic indicators, with uncertainty around government budgets and policies as a key component. Geopolitical tensions continue to play its role, while a predicted stock market correction due to AI has started moving to the forefront at the end of the year. All in all, a gloomy picture, not only for the remainder of 2025, but most of 2026.

“There has been a continuation of volume driving market activity, with the overall Q3 on Q3 value decline of -0.1% balanced between volume growth of 0.7% and an average price decline of -0.8%. The previous two quarters were the first in more than two years to see growth against the previous year’s quarter, so year-to-date value growth remains positive at 1.2%, driven by volume growth of 2.8%.

“Heavy Building Materials has seen a value decline of -1.7% against Q3 2024, with volume and average price down by -0.4% and -1.3% respectively. The main trends in the underlying data show strong volume growth for aggregates, while bricks, cement and insulation also had growth. Blocks were the key driver behind the volume decline, but there were also declines for plaster, plasterboard and roofing tiles. From an average price perspective, the main drivers behind the decline were aggregates, cement and insulation.

“Timber & Joinery value was up by 2.1% against Q3 2024, with volume up by 2.4%. Average pricing was down by -0.3% against Q3 2024. Timber performance stood out, with growth in both volume and average price. This performance was, however, negated to an extent by both volume and average price declines for sheet materials, while there were also declines for mouldings and roof windows. Cladding again showed good performance, following on from the previous quarter.

“Landscaping and most of the other smaller categories saw value growth in the most recent quarter. Renewables & Water Management was the best performing, up by 6.0% in value. Landscaping itself was up by 0.7% in value, while Kitchens & Bathrooms saw growth of 2.9%. Decorating saw the largest value decline, down by -3.3%, while Ironmongery and Workwear & Safetywear also saw value declines.

“The fourth quarter is expected to be challenging, with confidence in market conditions continuing to deteriorate.”

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