The Construction Products Association’s (CPA) latest State of Trade Survey reports continued growth in UK sales of construction products in the third quarter of 2014. In addition, manufacturers reported optimism going forward and the survey highlights anticipated domestic sales growth over the next quarter and the next year. However, manufacturers also suffered falls in export sales during the third quarter (Q3).
Dr Noble Francis, CPA economics director, said: “The latest results highlight the strength of the UK economy in Q3, with private sector construction and manufacturing both benefiting. A rise in Q3 sales was reported by 78% of heavy side firms and 50% of light side firms compared with the previous quarter, and all firms reported a rise in sales compared with 12 months ago.
“Furthermore, as recovery in the construction industry has become more broad-based – across private housing, commercial and infrastructure sectors – growth in construction products has become more sustainable and manufacturers are optimistic going forward. Rising sales in the coming years are anticipated by 72% of heavy side product manufacturers and 90% of light side product manufacturers.
“While product manufacturers reported growth in domestic sales, 27% of heavy side manufacturers suffered falls in export sales during Q3, and 40% of manufacturers reported that the key reason for this was the poor economic performance of the Eurozone, the key export destination for construction products. A further 20% of manufacturers reported that the appreciation of Sterling was a key factor in fall in export sales during Q3.”
Key points include:
•61% of heavy side firms and 20% of light side firms reported that costs rose in Q3 compared with a year earlier
•67% of heavy side firms and 50% of light side firms anticipate costs rising further over the next year