Construction product manufacturers recorded an eighth consecutive quarter of sales growth in the second quarter of 2022. However, the balances of respondents reporting a rise were the lowest since the industry’s run of growth began following nationwide Covid-19 lockdowns in the second quarter of 2020. Furthermore, forward-looking indicators in the survey point to a weakening over the next 12 months as public and private sector clients, as well as households undertaking improvements projects, are affected by rapidly rising inflation.
• 30% of heavy side firms and 17% of light side firms reported that sales rose in Q2, the lowest balances since 2020 Q2
• Sales expectations weakened, with one-third of heavy side firms expecting sales to fall over the next 12 months, on balance
• Inflationary pressures remained intense and broad-based, across raw materials, fuel, energy and wage costs
• Demand was cited as the factor most likely to constrain output in the year ahead
• Hiring intentions balances weakened for both heavy side and light side manufacturers