Signs of hope for heavyside.

Building product sales fall

Published:  21 December, 2009

LONDON: Building material sales continued to decline in the last quarter although the rate of decline has slowed compared to the previous quarter, according to the Construction Products Association.

The Association's Construction Activity Barometer shows the majority of manufacturers are still affected by falls in construction.

Noble Francis, economics director at the association said: "Looking forward, product manufacturers expect the decline in sales to continue into the New Year."

Dominic McAra, director of the Ernst & Young's construction products team that prepared the report, said: "The score in this quarter's barometer shows some signs of encouragement for 2010, particularly for heavyside companies, although this increase starts from a very low confidence level. Most companies are still expecting a continuation of tough trading conditions next year, but the hope is that 2010 will at least see a more stable position than seen in 2009."

"Companies will still need to monitor cash flows carefully in 2010, particularly during the traditionally poor winter trading period. Long-term cash reserves, and retaining capital, will be key to most companies as it is still likely to be some time before trading returns to pre-recession levels," he said.

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