Sales of building products up

Published:  05 July, 2010

LONDON: Sales of construction products rose "significantly" during the second quarter, according to the latest Construction Activity Barometer from Ernst and Young and the Construction Products Association.

The survey also shows manufacturers are confident that the trend for growth will continue. In the Barometer, a figure of 50 represents no change in sales compared to a year earlier with below 50 representing a fall in sales. The second quarter's overall result of 77 suggests that conditions for product manufacturers are improving. However, this comparison is drawn against 12 months ago when sales were at a historic low.

Heavy side manufacturers rose to 79 in the second quarter, the highest level since the second quarter of 2007, while light side manufacturers were also positive with a score of 66.

Looking ahead, the majority of construction products manufacturers expect their sales to continue to rise in the third quarter, compared with the same quarter one year earlier.

Noble Francis, economics director at the Association said; "This latest survey illustrates that the situation for the construction products industry is substantially better than it was one year ago but, with major public spending cuts looming, manufacturers fear that sales will fall sharply once again.

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