Products sales picking up

Construction product sales have strengthened in the past three months and have exceeded manufacturers’ expectations, according to latest figures from the Construction Products Association.

The association’s Activity Barometer Survey, which provides an advance indicator of trading conditions and prospects, has recorded a score of 68, firmly above the 50 ‘no change’ mark.

The improvement in sales volumes follows a period of little improvement during the first half of the year after the decline in output seen during 2005.

Allan Wilén, the association’s economics director, said: “Sales of light-side products are leading the upturn, with an exceptionally strong reading of 75, as firms that supply DIY and consumer-related products have reported a recovery in orders during July, after the World Cup disrupted sales in June. However, encouragingly, heavy-side manufacturers have also reported a marked improvement in their sales volumes albeit against a third quarter of 2005.

“Looking ahead light-side firms remain especially positive, both for the final quarter of 2006 and the coming 12 months. In contrast, heavy side firms remain relatively cautious,” Wilén said,

[Contract Journal, 4 October 2006, p 2]