The most recent Builders Merchant Building Index (BMBI) report reveals contractors’ merchant profits were down by 5.7% in November 2023 compared to the exact same month in 2022, with volume sales falling 12.1%.
Sales profits did not fall as much as sales volumes due to the fact that costs were, typically, 7.2% greater in November 2023 than they had actually been 12 months previously.
6 of the 12 item classifications offered more in November 2023 compared to the previous year. Falling sales in the 3 biggest classifications contributed to a general decrease in volumes, with heavy structure products (-7.0%), landscaping (-7.4%) and wood & & joinery items (-10.9%) all offering less.
Month-on-month, comparing November to October, profits were down 4.4% and volumes by 7.5%. Costs increased by 3.4% in simply the one month. Workwear & & safetywear was the only item classification to see any increase in sales, with earnings here up by 10.9%. Landscaping– a seasonal classification– was down 14.2%, more than any other classification.
Overall merchant sales earnings in the duration January to November 2023 were down 4.9% on the very same duration in 2022 and sales volumes were down 13.8%. Costs increased by 10.3%.
Mike Rigby, handling director of MRA Research which produces the BMBI report states: “November was another tough month for the UK’s home builders’ merchants. Following significant storms in September and October, November provided yet more damp and windy weather condition and extensive flooding which postponed scheduled building and construction work. The real estate market is still in the doldrums with high home loan rates, significant deposits and cost impacting brand-new home sales and the brand-new construct market. Increasing leasings are likewise putting the capture on future home purchasers.”
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