Building material sales stabilise
Published:  06 April, 2010

LONDON: Building material sales remained stable during the first quarter of 2010, according to the Construction Products Association.

Its Construction Activity Barometer, compiled by Ernst and Young, showed pronounced differences between sectors: heavy side manufacturers were acutely affected by the adverse weather conditions earlier this year and experienced a further decline in sales; but light side manufacturers saw a significant rise in sales, the first positive result since the first half of 2008.

Noble Francis, economics director for the Construction Products Association said improved conditions reflect the fiscal stimulus from government during the recession. "Looking forward, the rest of 2010 and 2011 are likely to remain extremely challenging for the industry given the threat of sharp cuts in public capital spending, he said.

Dominic McAra, director in the Ernst & Young's Construction Products team said:

"Although we suspect there will be more restructuring over the next 12 months - it will perhaps be at a lower level as companies become cautious about endangering future capacity by cutting too deep."

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