Strong First Quarter Points to Positive Start to 2014 for the Minerals Products and Construction Sectors
MPA results for Q1 2014 indicate significant increases over the same period of 2013, albeit lower than the last quarter of 2013. Aggregates and asphalt sales volumes were about 17% higher and ready mixed concrete sales 5% up in Q1 2014.
These strong volumes need to be put in the context that Q1 volumes in 2013 were historically low and markets had yet to see the benefits of the sharp pick up in housing activity from April 2013. Q1 2014 volumes are in fact slightly lower than the very strong Q4 2013 volumes, but the underlying performance over the two quarters suggests that construction market improvements are extending beyond housing and beyond London and the South East.
Yesterday’s provisional GDP figures indicated only modest construction growth of 0.3% in Q1 2014 compared with Q4 2013, but the improvement in aggregates sector sales in recent quarters points to stronger general construction growth through 2014.
Nigel Jackson, Chief Executive MPA, commented: “These first quarter figures add weight to the signs of recovery seen in 2013 and provide evidence that we are now seeing a more sustained improvement in construction markets. However we remain over 25% below pre-recession levels of activity and we are very aware of the caution expressed by the Chancellor that the recovery has some way to go*. Government needs to maintain a relentless focus on recovery, notably the delivery of repeatedly announced infrastructure projects, to ensure businesses throughout the UK have the opportunity to grow and invest.”
*Commenting on the provisional first quarter GDP figures, the Chancellor commented: “Today’s figures show that Britain is coming back - but we can’t take that for granted. We have to carry on working through our long term economic plan……..”
MINERAL PRODUCTS ASSOCIATION
QUARTERLY CONSTRUCTION MATERIAL TRENDS
The figures give sales trends by volume of material sold for a consistent sample of Mineral Products Association members comprising the following proportions of total GB markets.
Crushed Rock aggregates (approx 80%), Sand Gravel aggregates (approx 80%), Asphalt (approx 80%), Ready-mixed concrete (approx 60%), Cement (approx 85%)
RESULTS
% change over same period of previous year
2012
QTR 3
2012
QTR 4
2012 YEAR
2013 QTR 1
2013 QTR 2
2013 QTR 3
2013
QTR 4
2013
YEAR
2014
QTR 1
Crushed Rock
-4
+1
-7
-3
+15
+7
+10
+8
+18
Sand Gravel
-12
-11
-13
-10
+11
+12
+18
+8
+15
Asphalt
-20
-16
-17
-18
+9
+11
+14
+4
+17
Ready mixedConcrete
-9
-4
-9
-2
+23
+12
+12
+12
+5
Cement
-8
-7
-7
-7
+10
+13
na**
+10*
na**
*2013 change in total cementitious sales volumes
** Cement data will from now on be published on an annual basis only
