BMBI: Builders’ Merchants value sales down -2.3% in January year-on-year, with flat volume sales and prices down -2.3%

The latest Builders Merchant Building Index (BMBI) report shows builders’ merchants value sales in January were down -2.3% compared to the same month in 2024. Volume sales were flat (+0.0%) and prices slipped -2.3%. There was no difference in trading days.

Year-on-Year

Only two categories sold more year-on-year – Services (+3.5%) and Tools (+2.4%). Although down, some categories performed better than Total Merchants including Heavy Building Materials (-1.2%), Ironmongery (-1.5%) and Workwear & Safetywear (-1.9%). Kitchens & Bathrooms (-4.2%), Timber & Joinery Products (-4.4%) and Decorating (-6.3%) were the weakest categories.

Month-on-Month

January total value sales were +33.9% up on the previous month, December 2024. Volume sales climbed +34.3% and prices were -0.3% lower. All categories sold more and seven outperformed Total Builders Merchants. These were Miscellaneous (+38.9%), Ironmongery (+38.5%), Workwear & Safetywear (+38.2%), Timber & Joinery Products (+37.4%), Heavy Building Materials (+35.5%), Plumbing, Heating & Electrical (+35.1%) and Kitchens & Bathrooms (+34.1%). However, with five additional trading days in January, like-for-like value sales (which take trading day differences into account) were up only +3.5%.

Latest 12 months

In the period February 2024 to January 2025, total value sales were -4.1% down on the previous 12-month period (February 2023 to January 2024). Volume sales fell -4.1% and prices were flat (+0.0%). Five of the twelve categories sold more with Workwear & Safetywear (+8.9%) up the most, followed by Tools (+6.5%) and Services (+3.2%). The two largest categories Timber & Joinery Products (-6.3%) and Heavy Building Materials (-5.3%) declined more than Total Merchants. Renewables & Water Saving (-22.2%) was weakest. With two extra trading days this period, like-for-like value sales were -4.9% lower.

Charles Burns, Divisional Director at Brett Martin and BMBI’s Expert for Plumbing & Drainage comments:

“Quarter four was a mixed bag with October and December better than forecast, but November, typically a very busy month for us, being unexpectedly quiet. The picture from our independent merchant customers was similarly mixed with an even split of customers reporting slightly more upbeat trading and others reporting a relatively flat or slight decrease in trading. 

“Merchants and products focused on the RMI market saw more positive trading compared to those focused on the new build residential market. It is unclear why RMI was slightly stronger than the Q3 trend, but with consumer sentiment remaining low we do not see this as a medium-term trend. 

“Mortgage rates saw a small uptick in October and November, and we believe this contributed to the gloomy trading conditions in the new build residential market, although we are seeing some green shoots of recovery in the residential new build market in early 2025.  The recent announcement of a slight pick-up in inflation may hinder the much-needed interest rate cuts. We believe this alongside the slow start by the new Labour government and the price increases necessitated by the budget for employers NIC and minimum wage, will continue to be a drag on consumer and industry confidence into Q2 2025 at least.

‘A market which remains fragile’

“The data for planning applications, house starts and completions remains challenging but conflicts with reporting from selected house builders, suggesting that regional differences remain. This is an indication of a market which remains fragile and in-need of some consistent, nationwide positivity to drive confidence in housing. Until consumer confidence returns, it is unlikely that any amount of Government targets will provide the kick start required.”

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