24 July 2008

Continuing Decline in Aggregates and Ready-mixed Concrete Sales in Second Quarter

Sales volume of aggregates and ready mixed concrete declined again in the second quarter of 2008, compared with the same period of 2007. The decline in crushed rock aggregates sales follows a flat first quarter, while the decline in sand and gravel aggregates sales evident in the first quarter was broadly maintained in the second quarter.

The downturn in construction activity is also reflected in the 6% decline in sales of ready mixed concrete in the first half year. This product tends to be used early in the construction process and confirms that the reduction in orders for new housing, commercial and industrial construction recorded to date in 2008 is now impacting in the market.

Sales in Asphalt are so far positive in 2008 due to a number of national road schemes being near completion, but this improvement is from a historically low level of activity in 2007. However, given the lack of new work evident in the Highways Agency programme and the continuing lack of resourcing for local highway authorities, the asphalt market is likely to decline in the medium term.

With the continuing deterioration in economic and construction indicators it looks inevitable that aggregates sector markets will witness an accelerated decline in the rest of 2008, with a further fall in 2009.

For the graphs showing the second quarter figures click here.

ENDS

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