November Merchant Sales Slide -5.7% as Volumes Drop -12.1% On Year

BUILDERS’ merchants sales by value were down -5.7% in November 2023 compared to the same month in 2022, with sales by volume falling -12.1% and prices increasing +7.2%.

The latest Builders Merchant Building Index (BMBI) report shows that compared to November 2022, 6 of the 12 categories sold more in November 2023 compared to the previous year.

However, falling sales in the 3 largest categories contributed to an overall decline in volumes, with Heavy Building Materials (-7.0%), Landscaping (-7.4%) and Timber & Joinery Products (-10.9%) all selling less.

November Merchant Sales

Month-on-month, total merchant sales were down -4.4% in November compared to October 2023. Volume sales decreased -7.5% and prices increased (+3.4%). There was no difference in trading days. Only 1 of the 12 categories increased enough to compensate for falling volumes and that was Workwear & Safetywear (+10.9%). Seasonal category Landscaping was the weakest (-14.2%).

Total merchant sales between January to November 2023 were -4.9% down on the same period in 2022. Volume sales were down -13.8% while prices rose +10.3%. With two more trading days in the most recent period, like-for-like sales were -5.7% lower. Nine of the 12 categories sold more, with Renewables & Water Saving (+31.2%) the only standout. Again, the 3 largest categories – Heavy Building Materials (-2.8%), Landscaping (-12.2%) and Timber & Joinery Products (-14.6%) each sold less.

Housing RMI More Resilient

Mike Rigby, Managing Director of MRA Research which produces the BMBI report says: “November was another difficult month for the UK’s builders’ merchants. Following major storms in September and October, November delivered yet more wet and windy weather and widespread flooding which delayed planned construction work.

“The housing market is still in the doldrums with high mortgage rates, sizeable deposits and affordability affecting new house sales and the new build market. Rising rentals are also putting the squeeze on future house buyers.

“Housing RMI, however, has been more resilient. While November building activity was hampered by the weather, repair and maintenance work increased by +3.8% in the 3 months to November (source ONS).

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