According to the latest State of Trade Survey from the Construction Product Association (CPA), during the fourth quarter of 2015 there was a slowdown in growth in the sales of construction products due to domestic weakness and a fall in export sales. 

However, despite this, sales achieved their 11^th consecutive quarter of growth and were still significantly higher on an annual basis. Manufacturers also remain optimistic about domestic and overseas prospects for 2016. 

A balance of 5% of heavy side firms and 38% of light side firms reported that sales were up during the fourth quarter of 2015, compared to respective balances of 13% and 29% in Q3.

Overall, 29% of heavy side firms and 23% of light side firms reported an annual increase in sales.

Exports decreased for 9% of heavy side firms and 20% of light side firms compared to a year earlier.

43% of heavy side product manufacturers and 42% of light side product manufacturers reported that they anticipate a rise in total sales over the next 12 months. Meanwhile, 10% of heavy side firms and 29% of light side firms anticipate a rise in exports during 2016.

14% of heavy side firms and 8% of light side firms reported an increase in costs in Q4

Manufacturers reported a decrease in fuel, energy and exchange rate costs, but wages and salaries were reported higher for 90% of heavy side firms and 77% of light side firms

CPA senior economist, Rebecca Larkin, said: “This marked the eleventh straight quarter of rising sales of construction products. For manufacturers on the heavy side, however, this was the lowest quarterly balance in three years, which echoes weakness in overall construction output data for the closing months of last year.”  

“Encouragingly, both heavy side and light side product manufacturers displayed optimism over the outlook for the year ahead. A balance of 43% of heavy side firms and 42% of those on the light side anticipated that product sales will increase during 2016, driven by renewed growth in international sales and domestic activity, led by the private housing, offices and infrastructure sectors in particular. We forecast output growth of 5.0%, 7.0% and 7.9%, respectively in these sectors in