Sam Parkin, senior economist at BCIS, said: ‘The latest figures are slightly more encouraging than those from recent months, with increases recorded for concrete block deliveries in September and aggregate sales in the third quarter.
‘However, we should be cautious about reading too much into these increases. Brick deliveries still recorded substantial monthly and annual declines in September, while longer-term trends continue to point to weaker activity in construction materials transactions, consistent with subdued demand across the sector.
‘The Autumn Budget brought some welcome news in the form of measures aimed at supporting both supply and demand, but considerable uncertainty remains over how much of an impact they will have on construction activity.
‘The government was relatively constrained in what it could deliver. Its priority now should be to monitor how effective the announced measures prove to be, listen to industry feedback and, where feasible, intervene further if they fail to deliver the intended improvements.’
Demand for key construction materials recorded a modest improvement in 3Q2026 according to the Mineral Products Association (MPA)(2). Higher sales volumes for aggregates, concrete, asphalt and mortar followed a four-year decline which the MPA attributes to persistent weakness in housebuilding and other private sector construction.
MPA chief executive Paul Adeleke warned that the construction downturn is far from over, describing the Autumn Budget as a missed opportunity to get construction activity and economic growth back on track.
The Budget included several measures aimed at stimulating demand and easing viability pressures, particularly in housebuilding. These included further details of the new first-time buyer scheme, an additional £1.5 billion for social and affordable housing, and a pledge to consider more proportionate regulation. While industry leaders broadly welcomed these measures, concerns remain that they will not go far enough to ease viability pressures.
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