The Mineral Products Association has reported updated sales volume figures for 2Q15 and 1H15, comparing this year’s results with the same time periods in 2014.
Whilst sales volumes of aggregates and ready mixed concrete are up, there are indications that construction markets have slowed down temporarily.
Sales volumes up in the construction industry
Sales volumes of aggregates and ready mixed concrete were 4% higher and asphalt 10% higher in 2Q15, compared to 2Q14 figures. Moreover, aggregates and concrete were 7% higher whilst asphalt sales 10% higher in 1H15 in comparison with 1H14.
Seasonally adjusted data removes the effect of seasonal factors including weather and public holidays. This data indicates lower underlying sales in the 2Q15 compared with 1Q15.
On this seasonally adjusted basis, second quarter asphalt and concrete sales were broadly flat at an increase of 0.3% and decrease of 0.7% respectively, compared to 1Q15. Meanwhile, aggregates sales declined – crushed rock decreased by 3.7% and sand and gravel by 7.2%, in comparison to 1Q15.
Furthermore, the latest GDP figures also indicate that second quarter construction output was flat compared with the first quarter.
Positive prospects due to government commitment to housing and infrastructure
On the other hand, expectations for construction output and mineral products demand remain positive. Growth in housing construction, improvements in commercial and infrastructure work – such as the implementation of major investment programmes – and evidence of economic activity beyond London and South East England are all set to support activity within the industry.
Nigel Jackson, Chief Executive MPA, commented: “Although there has been an underlying slowdown in recent construction activity, prospects are positive given the renewed government commitment to housing and infrastructure improvements and boosting city/regional development.”
Adapted from press release by Katherine Guenioui
Read the article online at: https://www.worldcement.com/europe-cis/03082015/mineral-products-association-reports-2q15-results-258/