Despite a fall in total value sales during the final quarter of 2024, the figures released in the latest BMF Builders Merchants Building Index (BMBI) provide positive signals for the year ahead.

Year on year total value sales in Q4 2024 were only slightly down on the same period in 2023, falling by -0.5%. Another positive indicator saw total volume sales increase by +2.3% in Q4 2024 over Q4 2023. Price growth was negative, falling by -2.7%. With one more trading day in Q4 2024, like-for-like value sales were -2.2% lower.

There were continued improvements for both largest categories, with Heavy Building Materials, down by just 0.2% compared to Q4 2023, outperforming the total market. Timber & Joinery Products fell by -2.6% in value, but again this showed improvement on previous quarters’ results. Four smaller categories sold more in Q4 2024 than Q4 2023, led by Tools, up by +8.8%.

An analysis of the Heavy Building Materials category shows strong quarterly value performances for Blocks, Plaster and Roofing Tiles, while Bricks and Blocks drove volume increases. Timber was one of the best-performing subcategories in Timber & Joinery Products, but a negative performance in Sheet Materials contributed to the overall value decline.

Comparing sales value growth in Q4 2024 with Q3 2024 shows total value sales falling by -13.9%. Total volume sales were down -15.6% on the previous quarter and prices were up +2.0%. Only three of the BMBI’s 12 categories sold more in Q4, led by Plumbing, Heating & Electrical, up +2.7%.

However, the quarter-on-quarter comparison is skewed by construction’s traditional end-of-year break, with most sites closing over the Christmas and New Year period. With four fewer trading days in Q4, like-for-like sales were down -8.2% on Q3 2024.

From a full-year perspective, total value sales in 2024 were -4.1% lower than 2023. Total volume sales were -4.3% down, with prices slightly up (+0.2%). Value sales increased in five of 12 categories, led by Workwear & Safetywear (+10.8%) and Tools (+6.7%). Heavy Building Materials were down by -6.4%, and Timber & Joinery Products by -5.5%. With three more trading days in 2024, like-for-like value sales were -5.2% lower.

Emile van der Ryst, Key Account Manager – Trade & DIY at NiQ GfK, said: “There is clear evidence that the builders’ merchants sector turned a corner as 2024 came to a close.

"The most positive indicator has been a return to volume growth, with Q4 2024 up by +2.3% against Q4 last year. Coupled with this, price growth was negative for the first time in years. Positivity around sentiment continues to grow, with this acting as a reference point for anticipated future growth.”

John Newcomb, CEO of the BMF, said: “After two pretty tough years, I remain cautious about overstating prospects for the coming year, but one or two encouraging signs are now emerging in our sales data.

"With interest rates gradually coming down and consumer confidence improving, we should be preparing for growth in the second half of 2025.”