Wednesday, 28 November 2012
BMF reveal improvement in building materials' sales
Some good news for building products sector as the Builders' Merchants Federation reveal that their monthly indicators show sales of building materials have increased in Q3.
Materials sales increased by 1.9% in July to September 2012, compared with the same period last year; and by 8.9% when compared with the preceding quarter of this year. Although this is encouraging news the BMF's research also indicates a fall nationally of 1.6% in builders' merchant sales for the 12 months to September 2012 over the previous 12-month period.
The BMF secretary, Peter Matthews, said: "It is clear that construction is lagging behind other industries in coming out of recession, largely due to the financial constraints limiting building activity and the housing market.
"Construction has a high proportion of small businesses who are suffering the consequences of the credit squeeze on two fronts. Mortgage lending is running at about 30% of average levels and it is this which impacts on housebuilding and the home improvement market. Lenders are treating smaller building companies like social pariahs and refusing them lines of credit.
"If the situation is to improve in the foreseeable future, we need more than just the Bank of England's lacklustre Funding For Lending Scheme to start lending again."
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