Sales growth to slacken for builders' merchants

Sales growth for builders' merchants is forecast to slacken through to 2008, according to a new report by market intelligence provider Key Note.

A modest rise of 3% in the value of the builders' merchants' market is expected this year, but overall Key Note predicts that between 2004 and 2008 the builders merchants market will increase by 11.2% to £11.56bn.

Rising interest rates and the threat of serious consumer debt problems for those who might otherwise move or buy a property will have a knock-on effect on builders' merchants, the report states.

Key Note believes that the provision of technical advice is an area that builders' merchants could develop.

"This would help counteract competition from DIY stores, where detailed technical advice can be very difficult to obtain," said Key Note.