Sales of sand and gravel in Britain have fallen 7.3% over the last 12 months, according to the MPA.
The trade body representing Aggregate Industries et al. report that various factors have contributed to the decline in demand:
Construction materials cost inflation may have slowed from a peak in mid-2022, but the cumulative effect of high costs and higher interest rates over the past 18 months continues to weigh heavily on the financial viability of projects and on housing affordability. Additionally, labour constraints throughout the construction supply chain have contributed to the overall challenges faced by the sector.
DEMAND DROPS: Our new quarterly survey provides more concrete evidence of the #slowdown in #ukconstruction, with a decline in sales volumes of 'heavyside' materials during the second quarter of 2023.
— Mineral Products Association (@MineralProduct) August 2, 2023
Full story: https://t.co/INZ0qfuTLk@biztradegovuk @ConstructionCLC @CNplus pic.twitter.com/w9Y3KrzADd
Meanwhile, the CPA reports that the construction sector is entering an "acute" recession:
The construction industry is expected to experience an acute recession this year driven by double-digit falls in the two largest construction sectors: private housing new build and private housing repair, maintenance, and improvement. The CPA forecasts construction output to fall by 7.0% in 2023...
🏗️CPA Construction Industry Forecasts - Summer 2023 published today! Our latest Forecasts show a sharp fall in housing leading to a recession in the UK construction industry. Find out more from critical information from our forecasts here👇 https://t.co/g6KY0qYs76 pic.twitter.com/ufoI4SKU1z
— Construction Products Association (@CPA_Tweets) July 24, 2023
