Exports boost UK sales of construction products

According to the UK Construction Products Association’s latest State of Trade Survey, there was a slight recovery in construction products sales in 2Q13.

Heavy side volumes increased q/q, following a negative 1Q13 when poor weather conditions impacted sales. However, heavy side volumes remained below those recorded in 2Q12. Light side product sales were in line with 1Q13 and also came in lower than last year’s sales figures. However, there has been an improvement in market sentiment, with 38% of heavy and 31% of light side companies expecting sales volumes to grow in 3Q13.

Sales volumes were boosted by exports, which rose by 30% and 20% q/q for light and heavy side companies, respectively.

Milja Keijonen, Construction Products Association Economist stated: “The second quarter of 2013 saw a predicted bounce back in quarterly construction product sales following a weak performance during the first three months of 2013. Export sales continued to provide a lifeline for many product manufacturers, whilst the domestic construction industry remained subdued. Both heavy and light side sales continued to decline on an annual basis, even if the pace of these falls showed signs of slowing down from Q1.”

“Looking ahead, product manufacturers remain optimistic about sales growth. Recent data releases on the UK economy have fuelled optimism over growth prospects. Also, market conditions are expected to improve as the year progresses with private housing one of the key sectors expected to boost domestic demand. Export sales are anticipated to continue providing a boost even if most European economies, the UK’s main export markets, remain firmly in negative territory,” added Keijonen.

Adapted from press release by Louise Fordham.

Read the article online at: https://www.worldcement.com/europe-cis/11072013/cpa_state_of_trade_survey_highlights_2q13_46/