Aggregates market sees big improvement

The aggregates market improved in the second quarter of 2003, the latest survey of market trends from the Quarry Products Association (QPA) has revealed.

Crushed rock sales rose by 3% between April and June 2003, while sand and gravel sales increased 2%.

A 4% improvement in asphalt sales and flat performance of ready-mixed concrete sales illustrates the current pattern of construction activity, said the QPA.

"Activity in the infrastructure sector, including roads, continues to improve - so boosting asphalt sales. The flat pattern of ready-mixed concrete sales for the year is indicative of the slow down in housing, commercial and industrial construction markets," said the QPA.

The QPA added that the erratic performance of the aggregates market over the past 18 months is partly due to distortions caused by the introduction of the Aggregates Levy in April 2002, but feels this tax effect "should diminish over the rest of the year".

"As long as the Chancellor sustains his plan to increase investment in public services and infrastructure, it remains evident that these sectors will continue to be the main drivers of aggregates and construction markets over the next two years," concluded the QPA.