Latest State of Trade Survey shows “strength of UK economy”
Published: 14 October, 2014
UK sales of construction products have increased in the third quarter of 2014, according to the most recent State of Trade Survey from the Construction Products Association (CPA).
In addition, manufacturers reported optimism going forward and the survey highlights anticipated domestic sales growth over the next quarter and the next year.
The survey’s key findings include:
- Seventy-eight percent of heavyside firms and 50% of lightside firms reported that sales rose during the third quarter
- Seventy-two percent of heavyside product manufacturers and 90% of lightside product manufacturers reported that they anticipate sales rising over the coming year
- Sixty-one percent of heavyside firms and 20% of lightside firms reported that costs rose in Q3 compared with a year earlier
- Sixty-seven percent of heavyside firms and 50% of lightside firms anticipate costs rising further over the next year
- Twenty-seven percent of heavyside manufacturers reported that exports fell in Q3
- Forty percent of manufacturers reported that the economic conditions of export destinations were the key factor affecting exports.
Dr Noble Francis, economics director at the CPA, said: “The latest results highlight the strength of the UK economy in Q3, with private sector construction and manufacturing both benefiting.”
He continued: “Furthermore, as recovery in the construction industry has become more broad – across private housing, commercial and infrastructure sectors – growth in construction products has become more sustainable and manufacturers are optimistic going forward.”
Mr Francis added: “While product manufacturers reported growth in domestic sales, 27% of heavyside manufacturers suffered falls in export sales during Q3, and 40% of manufacturers reported that the key reason for this was the poor economic performance of the Eurozone – the key export destination for construction products.”