Ready-mixed concrete sales slump in London

Newest figures from the Mineral Merchandise Affiliation present UK demand for important building supplies dropped additional within the first quarter of 2026, extending a four-year downturn.

Mortar gross sales, a key indicator of home constructing exercise, fell 2% on the earlier quarter and had been 5.4% down year-on-year.

Prepared-mixed concrete gross sales slipped 0.5%, whereas main aggregates fell 0.8%. Asphalt was broadly flat, down 0.1%, after a short-term enhance from street upkeep work forward of the monetary 12 months finish.

The hunch has hit London significantly onerous, the place ready-mixed concrete volumes over the previous 12 months had been 47% decrease than in 2022.

MPA director of financial affairs Aurelie Delannoy mentioned: “The Q1 information largely predates the latest escalation in international dangers and power costs, but it surely exhibits that UK building demand was nonetheless falling as prices had been beginning to rise.

“Since February, early indications from MPA members level to increased gas and manufacturing prices, alongside rising indicators of challenge delays and pauses, significantly on some lower-margin housing schemes.”

Home constructing and business work proceed to pull down demand, with increased borrowing prices, weak confidence and affordability pressures holding again funding.

Infrastructure stays the one vibrant spot, with HS2 and Sizewell C serving to to help aggregates demand. Crushed rock volumes rose 1% in Q1, however not sufficient to offset weak spot elsewhere.

MPA government chair Chris Leese mentioned: “There isn’t any signal of restoration within the Q1 information, and that is more likely to be additional compounded by the financial fallout from occasions within the Center East.

“Demand remains to be falling, and now prices are rising once more. That may be a tough mixture for any trade, and it raises actual considerations in regards to the outlook for building this 12 months.

“If this continues, we’re a fifth consecutive 12 months of decline.”

The MPA is asking for Authorities motion to help housing demand, pump public funding into infrastructure and street upkeep, incentivise non-public building funding by a super-deduction and reduce prices for the sector.