The latest State of Trade Survey from the Construction Product Association (CPA) has revealed continued growth in sales of construction products in the Q3 of 2016.
The survey indicates a positive landscape for sales in the third quarter of 2016, enjoying a fourteenth consecutive quarter of growth.
26% of heavy side firms and half of light side businesses (up from 38% in the previous quarter) said that construction product sales increased in the third quarter of 2016 in comparison with the second quarter.
On an annual basis, 68% of heavy side firms reported that sales had increased in the third quarter. 60% of the light side firms reported that sales were higher than 2015.
The increase on the light side was a significant jump on the zero registered in the second quarter.
Looking forward to the next quarter and beyond into 2017, the mood amongst manufacturers has improved dramatically in spite of continued economic uncertainty.
45% of heavy side manufacturers and 67% of those on the light side anticipated an increase in sales in the fourth quarter.
Over the next 12 months, 38% of heavy side firms and 33% of light side firms anticipated a rise in sales.
These figures were a significant improvement over the results of the State of Trade Survey results published in the second quarter of 2016.
42% of heavy side companies and 40% of light side companies predicted an increase in exports over the next 12 months.
Rebecca Larkin, CPA Senior Economist, said the increase in sales suggested the construction industry remained “resilient” in the face of the uncertainty both before and after the Brexit vote.
“Interestingly, the sharp depreciation in Sterling does not appear to have translated into an increase in export sales in our sector. Instead, the effect of the weak currency has been manifested in rising costs for imported raw materials and higher fuel bills, adding to the existing inflationary pressures on wages created by skills shortages. Nevertheless, manufacturers anticipated a pickup in overseas sales over the next 12 months.”
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