29th May 2025

The latest Builders Merchant Building Index (BMBI) report reveals builders’ merchants’ value sales for Q1 2025 were up +0.9% compared to Q1 2024. There was a moderate increase in volume sales (+3.9%), while prices came down -2.9%. There was no difference in trading days.

Eight of the twelve categories sold more in Q1 2025 compared to the same quarter a year before, with Services performing best (+5.3%). Heavy Building Materials (+2.0%) outperformed Total Merchants, while the other largest category – Timber & Joinery Products slipped -1.4% year-on-year. Workwear & Safetywear (-3.3%) was the weakest category.

Quarter-on-quarter builders’ merchants’ value sales for Q1 2025 were +5.2% higher than the previous three-month period (October to December 2024). Volume sales climbed +5.8%, while there was a slight drop in prices (-0.5%). With two more trading days in the most recent period, like-for-like value sales were +1.9% higher than the previous quarter. Eleven of the twelve categories sold more, with seasonal category Landscaping (+14.1%) growing the most, followed by Miscellaneous (+10.7%). Again, Workwear & Safetywear (-0.8%) was the weakest category.

Quarter 1 total value sales were given a boost by March sales, which were up +7.2% year-on-year. There was a double digit increase in volume sales (+11.2%), while prices came down -3.6%. With one extra trading day in the most recent period, like-for-like sales were +2.1% up. Eleven of the twelve categories sold more with Landscaping (+13.2%) ahead, closely followed by Renewables & Water Saving (+13.1%). Miscellaneous (+9.2%), Services (+9.0%), Ironmongery (+8.9%) and Heavy Building Materials (+8.5%) also had significant value sales growth in March 2025 compared to the previous year.

Month-on-month, March value sales were +14.9% higher than February. Volumes increased +17.0% and prices fell -1.8%, while all categories sold more. With one more trading day in March, like-for-like sales were up +9.5%.

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Mike Rigby, MD of MRA Research who produce this report, said, “To say it’s been a tempestuous start to the year would be a considerable understatement, as the world struggles to adapt to the rapid shifting of its foundations triggered by Trump’s volcanic tariffs onslaught. Relief that the UK has agreed a deal with the US has been short-lived as economists agree there’s little substance in it to drive growth. Other world leaders who have yet to sign a deal are contributing to the uncertainty and churn. For now, and the next five years at least, it’s goodbye Davos and know-where-you-stand treaties, and hello to the Godfather and an-offer-you-can’t-refuse.

“With such monumental geoeconomic headwinds, how will UK construction be affected? Even if the tariff tsunami is resolved quickly, a certain amount of disruption to supply chains and increased production costs is baked in. Given the cumulative impacts on uncertainty, I imagine consumer confidence and its effect on RMI and property will take longer to recover.

“Given the chaotic backdrop, merchant’s year-on-year March sales, and year-on-year Q1 sales are more robust than we could have expected. Admittedly, March 2024 and Q1 2024 were nothing to shout about, but month-on-month and quarter-on-quarter sales are also positive.

“The Construction Products Association reported a mixed start to the year with 15% of heavy side manufacturers reporting quarter-on-quarter decreases for Q1, while 55% light side manufacturers said sales increased – the strongest result since Q3 2019. Despite the disparity in fortunes, manufacturers remain optimistic about the year ahead.

“Animal spirits are resilient and powerful, but confidence has taken a battering. GfK’s long-running Consumer Confidence Index decreased by four points to -23 in April. All measures were down compared to March, and expectations for the general economic situation over the next 12 months fell to -37, sixteen points worse than April 2024. However, the Major Purchase Index component of the Consumer Confidence Index which correlates with larger domestic purchases and RMI projects is down two points at -19, six points better than April last year, so not all bad! Wages rising faster than prices, and more interest rate cuts to come will also provide relief for consumers.

“In practice, whether consumers postpone big purchases in 2025 or not will depend on a mix of domestic and global factors. The world feels more fragile and uncertain now than at any time since the Berlin Wall came down in 1989.”

Download the full report here.