23rd August 2018

The Builders Merchants Federation/GfK BMBI quarterly index has been published.

Total Builders Merchants sales continued to deliver value growth in quarter 3, up 4.2% on the previous year. July was particularly strong up 8.3% but the extra trading day YoY helped. August continued this trend and drove the growth with a positive 3.5% performance. However September fell off as the quarter came to an end showing only 0.8% growth on September last year.

The value growth year on year continued in Timber and Joinery with a year on year increase of 9.6% for the quarter. This growth was driven again by …..

….. Sheet Materials and Timber items such as Carcassing, Battens and Trusses. The quarterly pattern, like the overall trend, petered off with July up 12.7%, August up 9.5% and September still strong but reducing considerably to a positive 6.6%.

Landscaping again had a strong quarter as the weather allowed people to get outside. Sales rose 7.8% year on year, with Decking, Tools and Watering showing the strongest growth, but again we saw sales tailing off as the quarter progressed.

Heavy Building Materials had a slower month, up by 2.4% on the quarter with only July showing strong growth, with the extra trading day helping boost the figures. July was up 6.8%, August 1.6% and September down 1.3%, with Insulation, Cement and Aggregates leading the decline.

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Plumbing Heating and Electrical categories ended the quarter up 3.4% on the previous year showing a similar pattern across the months to the other core categories. July was up 9.6%, August up 1.2%, with September flat year on year. A positive quarter for Boilers was pulled down by a negative one for Electrical and Lighting.

Overall a solid value performance but we do not discuss volumes and prices in these reports. Have we now seen the end of the price inflationary impact from the Brexit vote? Will this flatter growth now become the norm?

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