According to the Construction Product Association’s latest State of Trade Survey, sales of construction products increased for the first quarter of 2016. 

Sales increased for a twelfth consecutive quarter. However, manufacturers’ optimism is showing signs of sliding due to uncertainty surrounding the EU referendum in June.

A balance of 31% of heavy side firms and 13% of light side firms reported that sales rose during the first quarter of 2016, compared to respective balances of 5% and 38% in the fourth quarter of 2015.

In addition, 38% of heavy side firms and 13% of light side firms reported an annual increase in sales

Exports increased for 14% of heavy side firms and 50% of light side firms compared to a year earlier.

Overall, 38% of heavy side product manufacturers and 29% of light side product manufacturers reported that they anticipate a rise in total sales over the next quarter and next 12 months.

Annual cost increases were reported by 35% of heavy side firms and 14% of light side firms and manufacturers reported that wages and salaries were reported higher by all heavy side firms and 71% of light side firms

CPA senior economist, Rebecca Larkin, said: “It is encouraging that after a couple of quarters of muted activity, heavy side manufacturers reported stronger sales growth in Q1. Light side manufacturers opened 2016 a little weaker, but this is likely to be a hangover as the slowdown reported by the heavy side at the end of last year filters through to light side activity – typically towards the end of the building process.”     

She continued: “Manufacturers’ optimism for Q2 and for the next 12 months has been dented by uncertainty in the run-up to the EU referendum in June. 

'One favourable side effect of the referendum uncertainty has been the depreciation in Sterling, which has resulted in increased exports for product manufacturers. On the heavy side, 71% of manufacturers anticipate an increase in export sales over the year, a view shared by 60% of light side firms. This will provide a welcome fillip if domestic demand pauses as manufacturers expect.”