The latest Builders Merchant Building Index (BMBI) figures paint a challenging picture for the UK construction sector, with merchant sales volumes down significantly year-on-year as economic uncertainty and global tensions continue to impact confidence across the market.
According to the report, like-for-like builders’ merchant sales volumes fell by 8.1% in Q1 2026 compared with the same period last year, while values declined by 3.2%. At the same time, prices increased by 5.4%, highlighting the ongoing pressure of inflation and rising material costs.
Industry experts have linked the slowdown to a combination of weak housing activity, cautious consumer spending and wider geopolitical instability following conflict in the Middle East. Concerns around inflation, energy prices and delayed investment decisions are continuing to affect both developers and homeowners.
Heavy Building Materials saw some of the steepest declines, while categories such as Renewables & Water Saving and Timber & Joinery showed more resilience and, in some cases, growth.
For businesses operating within construction, manufacturing and the merchant sector, the figures reinforce the importance of maintaining visibility and staying connected with customers during periods of uncertainty. When confidence slows, strong marketing, clear communication and a trusted brand presence become even more important in driving enquiries and long-term growth.
Despite current challenges, there are still opportunities for businesses willing to adapt. Growth areas including renewables, sustainable building solutions and home improvement continue to show momentum, even as broader construction activity softens.
As the sector looks ahead to the remainder of 2026, many will be watching closely to see whether government intervention, easing inflation or improved market confidence can help stimulate recovery across construction and housing.
ENDS
For media enquiries contact Jamie Pierce @ Jamie@agency53.co.uk or call 0204 534 2545.
