An ongoing drop in gross sales of mineral merchandise underlines the size of the challenges dealing with building, a sector physique has warned, including that weak demand is prone to persist in 2024.

Within the third quarter (Q3) of 2023, there have been “notable declines” in demand for ready-mixed concrete (15 per cent) and sand and gravel (12.2 per cent), in response to new information from the Mineral Merchandise Affiliation (MPA), whereas mortar gross sales dipped by 8.7 per cent.

The MPA stated that the drop in ready-mixed concrete gross sales was similar to the primary quarter of 2009, “when macroeconomic and building situations had been severely impacted by the worldwide monetary disaster”.

The affiliation stated the survey “reveals the extent of the slowdown in housebuilding exercise, compounded by persevering with delays in key infrastructure tasks, significantly in roads, because of persisting price pressures and planning challenges”.

Whereas the latest information reveals “pockets of regional progress” within the East of England and the South East, the MPA added that demand for all mineral merchandise it displays “has been on a declining development for many of the previous 18 months”.

The affiliation stated that progress in demand for merchandise on account of main infrastructure programmes comparable to HS2 part one had been “greater than offset by a weakening general pipeline”. As well as, funding in tasks has suffered from a “triple whammy” of price inflation, rising rates of interest and decreased enterprise and client confidence.

In highlighting the “deepening challenges for building”, the MPA stated markets had been impacted by “repeated supply setbacks” to street community improve schemes managed by Nationwide Highways.

The affiliation stated that whereas exercise had slowed usually within the sector over the previous 12 months, there had been a “significantly marked slowdown” since mid-July as housing demand continued to drop off.

The MPA concluded that its newest outcomes recommend “the continued strain on building exercise reveals little signal of abating”.

MPA director of financial affairs Aurelie Delannoy stated: “Confronted with persistent headwinds, the development business and its provide chain, together with mineral merchandise producers, is within the midst of a difficult interval.

“The decline in gross sales volumes for supplies comparable to concrete and mortar displays the broader points confronted by the sector, specifically the acute slowdown in housebuilding exercise. MPA members don’t foresee any enchancment in market situations within the near-term, with weak building demand prone to persist all through most of 2024.”

Delannoy stated the business was hopeful there can be measures to help progress and strengthened dedication to infrastructure tasks in November’s Autumn Assertion.

However he added that “the standard lag between coverage bulletins and tasks really beginning signifies that tangible enhancements in market situations for producers of mineral merchandise are unlikely to materialise subsequent 12 months”.