IN Brief:
- The Builders Merchants Building Index recorded like-for-like value sales down 0.6% in April 2026.
- Volumes fell 3.5% year on year, while prices rose 3%.
- The data points to continued weakness in core construction demand, particularly around heavy building materials.
The Builders Merchants Building Index recorded further weakness in April 2026, with like-for-like value sales down 0.6% compared with the same month in 2025.
Volume sales fell 3.5% year on year, while prices rose 3%. The figures show price inflation still cushioning headline value to some extent, although underlying product movement through the merchant channel remains soft.
The three-month picture was weaker. In the period from February to April 2026, like-for-like value sales were 2.8% lower than the same three months in 2025. Like-for-like volumes fell 7.1%, while prices increased 4.7%. With one extra trading day in the latest period, unadjusted value sales were down 1.2%, volumes fell 5.6%, and prices rose 4.7%.
Heavy building materials, one of the clearest indicators of site activity, remained under pressure. The category was down 1.9% by value in April, reinforcing concerns that core construction workloads are still not feeding through strongly into merchant demand. Renewables and water saving products, services, and other categories showed more mixed performance, but the overall picture remains one of fragile volume.
Merchant sales offer an early signal because they sit close to everyday construction activity. Bricks, blocks, timber, drainage, insulation, roofing materials, landscaping products, fixings, plasterboard, and other goods move through trade counters and merchant networks before they become visible in broader output data. Weak volumes therefore point to caution among housebuilders, smaller contractors, repair and maintenance businesses, and local trades.
The figures align with other signs of strain in the housing and construction market. SME housebuilder confidence has weakened sharply in recent survey data, with concerns around land availability, planning delays, buyer demand, finance costs, and viability continuing to restrict output. That pressure feeds directly into merchant demand because smaller and regional builders are important customers for heavy-side materials and project-led purchases.
Material demand is also being shaped by the type of work that is proceeding. New-build housing, extensions, retrofit, maintenance, infrastructure, and commercial refurbishment all use different product mixes. Weakness in heavy materials suggests that projects requiring substantial groundworks, masonry, drainage, and structural products are still being delayed, scaled back, or sequenced cautiously.
At the same time, the sector is being asked to move toward lower-carbon products and better-performing materials. The expansion of the low-carbon concrete commitment shows how specification pressure is moving through the market, but adoption depends on demand, confidence, availability, and procurement clarity. A weak volume environment makes that transition harder because manufacturers and merchants have less room to invest ahead of uncertain orders.
Price increases remain another complication. Rising prices can support value sales, but they also suppress demand when clients delay work or contractors reduce stockholding. Merchants have to manage inventory carefully in such conditions. Carrying too much stock creates working-capital pressure, while carrying too little risks losing sales when projects restart. The challenge is greater when product costs, lead times, and customer demand are all moving unevenly.
The 12-month trend points to a subdued market rather than a short April fluctuation. In the 12 months from May 2025 to April 2026, like-for-like value sales were down 0.7% compared with the previous 12-month period. Unadjusted volumes fell 2%, while prices increased 1.3%. Heavy building materials were among the weaker large categories.
For contractors, the data supports a cautious approach to programme and procurement planning. Weak demand may create price competition in some categories, but shortages can still appear quickly if manufacturers reduce output or merchants cut inventory. Where projects rely on specialist materials, long lead items, or certified systems, late buying remains a risk even in a soft market.
April leaves the market in a familiar position: active, but not moving with enough volume to suggest a broad recovery. Builders, merchants, manufacturers, and contractors are still navigating conditions where headline values can mask weak activity. Until volumes recover, the supply chain is likely to remain cautious, even as policy targets and project pipelines point to stronger long-term demand.
