Construction building materials: commentary, February 2024
Published 6 March 2024
© Crown copyright 2024
This publication is licensed under the terms of the Open Government Licence v3.0 except where otherwise stated. To view this licence, visit nationalarchives.gov.uk/doc/open-government-licence/version/3 or write to the Information Policy Team, The National Archives, Kew, London TW9 4DU, or email: [email protected].
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This publication is available at https://www.gov.uk/government/statistics/building-materials-and-components-statistics-february-2024/construction-building-materials-commentary-february-2024
Coverage: United Kingdom (UK) and Great Britain (GB) - country and region
1. Headline findings
Headline findings in this edition of the publication are that:
- exports of construction materials decreased by £92 million in Quarter 4 2023 compared to Quarter 3 2023, from £2,147 million to £2,055 million, a decrease of 4.3%
- imports of construction materials decreased by £245 million in Quarter 4 2023 compared to Quarter 3 2023, from £5,604 million to £5,359 million, a decrease of 4.4%
- the material price index for ‘All Work’ decreased by 1.6% in January 2024 compared to January 2023
2. Introduction
This commentary accompanies the latest Monthly Statistics of Building Materials and Components data tables, published on the Building Materials and Components web page on 6th March 2024. It provides an overview of recent trends in the data presented in the tables. The data tables present the latest detailed information on selected building materials and components. They cover the following materials:
- construction material price indices (monthly, UK)
- sand and gravel sales (quarterly, GB and regions)
- concrete roofing tiles production, deliveries and stocks (quarterly, GB)
- ready-mixed concrete deliveries (quarterly, UK)
- slate production, deliveries and stocks (quarterly, GB)
- cement and clinker production, deliveries and stocks (annual, GB)
- bricks production, deliveries and stocks (monthly, GB and regions)
- concrete building blocks production, deliveries and stocks (monthly, GB and regions)
- values of overseas imports and exports trades for selected materials and components for use in construction (quarterly, UK)
- value of European Union (EU) and Non-EU Trade for selected materials and components for use in construction (annual, UK)
These statistics support analysis of the construction materials market and business planning. They are regularly reported in the construction press and are used for a variety of purposes, including policy development, evaluation and monitoring market trends. For further details see the section headed 8.5 Uses of these statistics.
3. Summary of results
3.1 Material price indices
Table 1: Construction material price indices, year-on-year and month-on-month percentage change
| Material price indices | January 2023 to January 2024 | December 2023 to January 2024 |
|---|---|---|
| New Housing | 0.5 | -0.5 |
| Other New Work | -2.9 | 0.4 |
| Repair & Maintenance | -0.3 | -0.5 |
| All Work | -1.6 | -0.2 |
The material price index for ‘All Work’:
- decreased by 1.6% in January 2024 compared to January 2023
- decreased by 2.0% in December 2023 compared to December 2022
- decreased by 0.2% in January 2024 compared to December 2023
- decreased by 0.1% in December 2023 compared to November 2023
Table 2: Construction materials experiencing the greatest price increases and decreases in the 12 months to January 2024, UK
| Construction Materials | (% change) |
|---|---|
| Pipes and fittings (flexible) | 21.1 |
| Metal doors and windows | 18.9 |
| Ready-mixed concrete | 11.7 |
| Imported sawn or planed wood | -9.1 |
| Fabricated structural steel | -14.3 |
| Concrete reinforcing bars (steel) | -18.2 |
The aggregated construction material price indices hide larger price movements for some specific products and materials, table 2 shows the 3 largest increases and the 3 largest decreases.
3.2 Cement and clinker
Production of cement:
- decreased by 6.8% to 8.4 million tonnes in 2022 compared to 9.0 million tonnes in 2021
- increased by 12.0% in 2021 compared to 2020
Production of clinker:
- decreased by 2.8% to 7.2 million tonnes in 2022, compared to 7.4 million tonnes in 2021
- increased by 6.1% in 2021 compared to 2020
3.3 Sand & gravel
According to the seasonally adjusted data, sales of sand & gravel:
- decreased by 0.7% in Quarter 4 2023 compared to Quarter 3 2023
- decreased by 9.2% in Quarter 3 2023 compared to Quarter 2 2023
- decreased by 15.0% in Quarter 4 2023 compared to Quarter 4 2022
- decreased by 17.5% in Quarter 3 2023 compared to Quarter 3 2022
- after recovering from the Covid-19 pandemic, from 2022 the general trend has been of a decline
- have consistently remained below levels typically seen before the recession of 2008 to 2009
3.4 Concrete
According to the seasonally adjusted data, ready mixed concrete sales:
- decreased by 3.1% in Quarter 4 2023 compared to Quarter 3 2023
- decreased by 8.7% in Quarter 3 2023 compared to Quarter 2 2023
- decreased by 8.1% in Quarter 4 2023 compared to Quarter 4 2022
- decreased by 11.4% in Quarter 3 2023 compared to Quarter 3 2022
- recovered steadily since Quarter 2 2012 after the 2008 to 2009 recession, until the drop due to the Covid-19 pandemic
- have been declining since 2021
3.5 Bricks
According to the seasonally adjusted data, bricks deliveries:
- decreased by 8.0% in January 2024 compared to January 2023
- decreased by 24.7% in December 2023 compared to December 2022
- increased by 8.6% in January 2024 compared to December 2023
- increased by 2.1% in December 2023 compared to November 2023
- have been declining since 2022
- grew from 2013 until 2022, interrupted only by the sharp decline in 2020 due to the Covid-19 pandemic
- declined during the recession of 2008 to 2009
3.6 Blocks
According to the seasonally adjusted data, blocks deliveries:
- increased by 3.3% in January 2024 compared to January 2023
- decreased by 44.3% in December 2023 compared to December 2022
- increased by 15.7% in January 2024 compared to December 2023
- decreased by 10.7% in December 2023 compared to November 2023
- have been declining since 2021
- grew from 2013 until 2020, interrupted only by the sharp decline in 2020 due to the Covid-19 pandemic
- declined during the recession of 2008 to 2009
3.7 Imports and exports of construction materials
Exports of construction materials:
- decreased by £92 million in Quarter 4 2023 compared to Quarter 3 2023, from £2,147 million to £2,055 million, a decrease of 4.3%
- decreased by £91 million in 2023 compared to 2022, from £8,650 million to £8,559 million, a decrease of 1.0%
Imports of construction materials:
- decreased by £245 million in Quarter 4 2023 compared to Quarter 3 2023, from £5,604 million to £5,359 million, a decrease of 4.4%
- decreased by £2,448 million in 2023 compared to 2022, from £25,196 million to £22,748 million, a decrease of 9.7%
The trade deficit of construction materials:
- contracted by £153 million in Quarter 4 2023 compared to the previous quarter, from £3,457 million to £3,305 million, a decrease of 4.4%
- contracted by £2,357 million in 2023 compared to 2022, from £16,547 million to £14,189 million, a decrease of 14.2%
Table 3: Top-5 exported construction materials in 2023
| Top-5 exported materials | £ (million) |
|---|---|
| Electrical Wires | 1,023 |
| Paints & Varnishes | 862 |
| Lamps & Fittings | 422 |
| Air Conditioning Equipment | 419 |
| Linoleum Floor Coverings | 360 |
The top five exported materials in 2023 accounted for 36.1% of total construction material exports.
Table 4: Top-5 imported construction materials in 2023
| Top-5 imported materials | £ (million) |
|---|---|
| Electrical Wires | 2,756 |
| Lamps & Fittings | 1,090 |
| Sawn Wood > 6mm thick | 1,024 |
| Air Conditioning Equipment | 994 |
| Builders Ironmongery | 915 |
The top five imported construction materials in 2023 accounted for 29.8% of total construction material imports.
Table 5: UK trade of construction materials with EU and non-EU countries, 2023
| Trade | EU | Non-EU | Total |
|---|---|---|---|
| Exports £ (million) | 5,149 | 3,410 | 8,559 |
| Exports (% of total trade) | 60.2 | 39.8 | 100.0 |
| Imports £ (million) | 12,998 | 9,750 | 22,748 |
| Imports (% of total trade) | 57.1 | 42.9 | 100.0 |
Looking at the UK construction materials trades with the EU:
- the total share of exports going to the EU declined from 60.9% in 2022 to 60.2% in 2023
- the total share of imports coming from the EU increased from 54.6% in 2022 to 57.1% in 2023
- in 2019, prior to the UK’s withdrawal from the European Union and the COVID-19 pandemic, the share of total exports going to the EU was 62.1%, whilst the share of total imports coming from the EU was 60.6%
Table 6: Top 5 UK export markets for construction materials in 2023
| Top-5 Export Markets | £ (million) |
|---|---|
| Ireland | 1,558 |
| U.S.A. | 1,011 |
| Germany | 753 |
| Netherlands | 651 |
| France | 554 |
The top five export markets comprised 52.9% of total construction materials exports in 2023. Ireland is the largest export market, with a share of 18.2% of total exports.
Table 7: Top 5 UK import markets for construction materials in 2023
| Top-5 Import Markets | £ (million) |
|---|---|
| China | 4,538 |
| Germany | 2,139 |
| Italy | 1,312 |
| Spain | 1,259 |
| Turkey | 1,061 |
The top five import markets comprised 45.3% of total construction materials imports in 2023. Around 19.9% of all imports are from China.
The ‘Rotterdam Effect’ (also known as the ‘Antwerp Effect’) may affect trade figures. This is explained in detail by HMRC.
4. Economic background
4.1 Construction output
The Office for National Statistics (ONS) published estimates of construction output for December 2023 and October to December 2023 on 15 February 2024.
Key points:
- quarterly construction output saw a decrease of 1.3% in Quarter 4 (Oct to Dec) 2023 compared with Quarter 3 (July to Sept) 2023; this came solely from a decrease in new work (5.0% fall), as repair and maintenance increased by 4.0%
- monthly construction output is estimated to have decreased 0.5% in volume terms in December 2023; this came solely from a decrease in new work (1.1% fall), as repair and maintenance increased 0.4% on the month
- at the sector level, three out of the nine sectors saw a fall in December 2023, with the main contributors to the monthly decrease seen in infrastructure new work, and private housing repair and maintenance, which decreased 6.4% and 1.1%, respectively
- annual construction output increased by 2.0% in 2023 compared with 2022; this is the third consecutive year of annual growth
- total construction new orders decreased 13.1% (£1,361 million) in Quarter 4 2023 compared with Quarter 3 2023; this quarterly fall came mainly from the private commercial and industrial sectors, which decreased 18.1 % (£542 million) and 27.6% (£320 million), respectively
- the annual rate of construction output price growth was 3.1% in the 12 months to December 2023; this has slowed from the record annual price growth in May 2022 and June 2022 (10.7%)
4.2 Bank of England summary of business conditions
The Bank of England published its most recent update to the Agents’ Summary of Business Conditions on 14 December 2023, covering intelligence gathered in the five weeks to mid-November 2023.
Key points:
- construction output volumes continue to fall, though some of the slack from lower new housing and commercial development is being taken up by repair and maintenance
- order books continue to weaken but contacts expect this to stabilise during 2024
- private and social house-building activity has slowed over the last year, by up to 30% in some locations; higher price units in the South were impacted the most by increased mortgage costs
- social landlords carried out more remedial work and some private landlords invested to achieve higher rents
- commercial development has continued to slow due to current yields being too low, although cash-funded and pre-let projects continued
- existing large infrastructure projects remain one area of strength, with energy, water and defence contracts growing, with contacts citing planning and utility connections as key constraints
- there is growing evidence of construction firms failing, causing delays.
- commercial development is likely to contract further until confidence increases and rates of return improve
4.3 Business insights
The ONS published further information from their fortnightly Business insights and impact on the UK economy on 22 February 2024, which was live from 5 to 18 February 2024.
4.4 Gross domestic product estimate
ONS published estimates of Gross Domestic Product (GDP) for December 2023 on 15 February 2024.
Key points:
- real gross domestic product (GDP) is estimated to have fallen by 0.3% in the three months to December 2023, compared with the three months to September 2023
- on a quarterly basis, this gives two consecutive falls in GDP, with a fall of 0.3% in Quarter 4 (Oct to Dec) 2023 following an unrevised fall of 0.1% in Quarter 3 (July to Sept) 2023
- monthly GDP is estimated to have fallen by 0.1% in December 2023, following a growth of 0.2% in November (revised down from 0.3% growth) and a fall of 0.5% in October (revised down from a 0.3% fall)
- services output fell by 0.1% in December 2023, and in the three months to December 2023 services output fell by 0.2%
- production output grew by 0.6% in December 2023, but in the three months to December 2023 production output fell by 1.0%
- construction output fell by 0.5% in December 2023, and in the three months to December 2023 construction output fell by 1.3%
- output GDP is estimated to have annual growth of 0.4% in 2023 compared with 2022; this figure is measured differently to the 0.1% annual growth in 2023 in our GDP first quarterly estimate for October to December 2023, which uses average GDP
4.5 Gross domestic product forecast
The latest monthly Consensus Economics forecast survey (which uses an average of private sector forecasts) results were published in February 2024:
- the mean GDP forecast for 2024 is 0.3%, up from 0.2% in the previous month’s forecast
- the mean GDP forecast for 2025 is 1.1%, up from 1.0% in the previous month’s forecast
The Office for Budget Responsibility published a new Economic and Fiscal Outlook on 22 November 2023:
- GDP was expected to grow by 0.6% in 2023 (up from -0.2% in the previous forecast)
- GDP was expected to grow by 0.7% in 2024 and 1.4% in 2025
4.6 Construction output forecasts
Experian published their Winter 2024 forecasts for the construction sector in December 2023.
Key points:
- total construction output is projected to remain static in 2023, then increase by 0.3% in 2024 and 2.8% in 2025
- the housing sector is expected to decline by 13.4% in 2023, then increase by 1.7% in 2024 and 5.3% in 2025
- repair, maintenance & improvement (RM&I) is forecast to decline by 4.8% in 2023, then by 0.7% in 2024 and grow by 2.5% in 2025
- the new infrastructure sector is expected to grow by 5.9% in 2023, decrease by 0.2% 2024 and grow by 2.0% in 2025
- the private industrial sector is expected to grow by 0.3% in 2023, decline by 6.6% in 2024 and rise by 0.9% in 2025
- the public non-residential sector is forecast to grow by 6.6% in 2023, and decline by 0.1% in 2024 2025
The Construction Products Association published their Construction industry forecasts for Winter 2024 in January 2024.
Key points:
- the Construction products association (CPA) forecasts construction output to fall by 2.1% in 2024, before growing by 2.0% in 2025
- private housing is expected to fall by 4.0% in 2024 and grow by 4.0% in 2025
- private housing RM&I is expected to fall by 4.0% in 2024 and grow by 3.0% in 2025
- infrastructure output is expected to fall, albeit by only 0.5% in 2024, before growth of 1.2% in 2025
4.7 Manufacturing
The latest Index of Production data for December 2023 were published on 15 February 2024 by ONS.
Key points for the Standard Industrial Classification (SIC) 23.1-4/7-9 industry (includes manufacture of bricks, tiles and other construction products, seasonally adjusted):
- when comparing December 2023 with December 2022, output decreased by 14.6%
- when comparing December 2023 with November 2023, output increased by 0.4%
Key points for the SIC 23.5-6 industry (includes the manufacture of concrete, cement and other products for construction purposes, seasonally adjusted):
- when comparing December 2023 with December 2022, output decreased by 26.7%
- when comparing December 2023 with November 2023, output decreased by 4.5%
5. Accompanying tables
The most recently published data tables (available in Excel and Open Document Spreadsheet (ODS) format) can be found at the Building Materials and Components website in the ‘Construction building materials: tables, February 2024’ documents. All data used in this report for charts and tables are also available for users to download in the ‘Construction building materials: data for charts and table, February 2024’ document (ODS format).
Past editions of the statistics from 2005 to 2010, 2011 and 2012 onwards can be found at the National Archives website.
Requests for older data should be sent to [email protected].
6. Technical information
- Following a review of the publication in 2010, the Department for Business, Innovation and Skills (BIS) commissioned the ONS Methodology Advisory Service (MAS) to address some of the recommendations.
- HM Revenue & Customs (HMRC) use administrative sources to produce Overseas Trade Statistics. A Statement of Administrative Sources used to compile construction material trade statistics is available on the Building Materials and Components webpage. Separately, HMRC also have a Statement of Administrative Sources which covers Overseas Trade Statistics.
- Since the UK left the EU, there have been changes in the trade data collection methods, for more information see the ONS Impact of trade in goods data collection changes on UK trade statistics.
6.1 Seasonal adjustment
Following advice from the MAS, and the results of a consultation (see the results of the BIS consultation on seasonal adjustment for more detail), BIS agreed to publish seasonally adjusted data for the following series:
- sand and gravel, total sales
- concrete blocks, all types deliveries
- bricks, all types deliveries
- ready-mixed concrete, deliveries
For initial publication of seasonally adjusted data, data from 1983 onwards was seasonally adjusted. Subsequently, for each monthly publication, data up to 12 months or 4 quarters prior to the new data point is revised. Upon the completion of each year’s data series, data for the previous 12 years is revised. The department publishes both non-seasonally adjusted and seasonally adjusted data in the tables of this publication. From the June 2015 edition this publication has used seasonally adjusted data in the commentary for these series.
The seasonal adjustment review is carried out yearly. The purpose of correcting the reported series is to update seasonal factors such as winter weather (including the reduction in hours of daylight, and frost and rain) and other seasonal events such as Christmas and Easter. Thus, seasonally adjusted figures show the underlying trend more clearly.
6.2 Response rate
The following table gives a summary of response rates related to some of the latest survey results. Where the response rate is less than 100%, estimates are made for missing values.
| For latest data used | Bulletin table number | Response rate |
|---|---|---|
| Quarterly Sand and Gravel | 4 & 5 | 81% |
| - Quarterly Sand and Gravel – Land Won | 4 & 5 | 70% |
| - Quarterly Sand and Gravel – Marine Dredged | 4 & 5 | 92% |
| Quarterly Concrete Roofing Tiles | 6 | 57% |
| Quarterly Slate | 7 | 100% |
| Monthly Bricks data | 9 & 10 | 100% |
| Monthly Concrete Blocks | 11 & 12 | 93% |
7. Definitions
| Term | Description |
|---|---|
| Production | Products completed and ready for dispatch |
| Deliveries | Sold products which have left the premises |
| Stocks | Manufacturer’s stocks |
| Sand and gravel- land won | Sand and gravel from pits and quarries, including that derived from beaches and rivers |
| Sand and gravel- marine dredged | Sand and gravel derived from seas and estuaries |
8. Further information
8.1 Future updates to these statistics
The next publication in this series will be on 10th April 2024.
8.2 Pre-release access
Pre-release access is not granted for this publication.
8.3 Related statistics
- Construction Statistics: Sources and Outputs lists the known sources of information available on the construction industry and their outputs. These include information on employees, employment, enterprises, output and new orders in the construction industry as well as the contribution of the industry to the economy. Related information, for example housing, is also included.
- The Construction Statistics Annual brings together a wide range of statistics currently available on the construction industry from a variety of sources and provides a broad perspective on statistical trends in the construction industry, with some international comparisons.
- In its monthly Index of Production (IoP) publication, the ONS publishes Gross Value Added (seasonally adjusted, UK) data for the following two industries:
- SIC 23.1-4/7-9 industry, which includes the manufacture of bricks, tiles and other construction products
- SIC 23.5-6 industry, which includes the manufacture of concrete, cement and other products for construction purposes
These data are not directly comparable with the data in this bulletin, due to differences in coverage and methodology. They are nevertheless useful in illustrating the latest output trends of related construction materials as measured by the ONS.
8.4 Revisions policy
- Our revisions policy can be found on the Building Materials webpage.
- Data can be revised for a number of reasons, including receipt of more data, methodology changes and corrections. Data subject to scheduled revisions are published as provisional. The period for which data are provisional differs depending on material type and is indicated in each table, either by use of [p] markers or in footnotes. When provisional data become final, [p] markers are removed.
- For unscheduled revisions, no revision marker is added, though in the case of substantial revisions a note will be added at the top of the revised table and in the ‘Revisions’ section of the table file.
- Users should download the latest edition of the publication to ensure they have the most up-to-date tables.
8.5 Uses of these statistics
The Building Materials and Components statistics are used for a variety of purposes, including policy development and evaluation concerning the construction products industry, as well as monitoring market trends. In a wider context, the figures are regularly reported in the construction press to facilitate market analysis and business planning for its wide range of readers. The statistics are also increasingly used by financial institutions for assessing market information and industry trends. For more information on the uses of the Building Materials statistics, their usefulness to users and users’ views on the quality of these statistics, see Section 3 of the Building Materials and Components review.
8.6 User engagement
Users are encouraged to provide comments and feedback on how these statistics are used and how well they meet user needs. Comments on any issues relating to this statistical release are welcomed and should be sent to: [email protected].
The Consultative Committee on Construction Industry Statistics (CCCIS) meets twice a year, chaired by the department, to discuss issues relating to the collection and dissemination of UK construction statistics. The CCCIS has a wide membership representing government, the construction industry and independent analysts. Minutes of previous CCCIS meetings are available from the building materials web page.
The department statement on statistical public engagement and data standards sets out the department’s commitments on public engagement and data standards as outlined by the Code of Practice for Statistics.
8.7 Accreditation of official statistics
Accredited official statistics were previously referred as National Statistics. Our statistical practice is regulated by the OSR. OSR sets the standards of trustworthiness, quality and value in the Code of Practice for Statistics that all producers of official statistics should adhere to.
These accredited official statistics were independently reviewed by OSR in 2011. They comply with the OSR and should be labelled ‘accredited official statistics’.
You are welcome to contact us directly with any comments about how we meet these standards. Alternatively, you can contact OSR by emailing [email protected] or via the OSR website.
Since the latest review by OSR, we have continued to comply with the Code of Practice for Statistics, and have made the following improvements:
-
carried out a public consultation and introduced publication of seasonally adjusted data on deliveries of sand and gravel, concrete blocks, bricks, and ready-mixed concrete
-
in response to the cessation of the Department for Levelling Up, Housing and Communities (DLUHC)’s Annual Minerals Raised Inquiry, which previously supplied the sampling frame for the land-won sand and gravel survey, we have:
- changed the survey from sample survey to a census, increasing the panel from 200 sites to around 500 sites
- refreshed the panel of sites annually using information from the British Geological Survey
- made the survey statutory under the Statistics of Trade Act 1947, bringing it into line with the marine-dredged sand and gravel survey
-
improved the design of the blocks survey, making it fully monthly instead of a mixture of monthly and quarterly data collection
-
introduced the publication of the tables in an OpenDocument (ODS) spreadsheet, in addition to Microsoft Excel
-
rebased all price indices series to 2015 = 100 in the November 2020 publication
-
in February 2024 we have replaced the previous production process with a reproducible analytical pipeline and consolidated storage of historical data on new SQL databases
-
redesigned tables to conform to The Public Sector Bodies (Websites and Mobile Applications) Accessibility Regulations 2018 legislation
-
redesigned the PDF commentary in HTML, which is more accessible particularly for readers using mobile devices
8.8 Contact
Responsible statistician: Pio Francesco Medolla
Email: [email protected]
Media enquiries: +44 (0)20 7215 2000
Public enquiries: +44 (0)20 7215 2820
© Crown copyright 2024
This publication is licensed under the terms of the Open Government Licence v3.0 except where otherwise stated. To view this licence, visit the National archives or write to the Information Policy Team, The National Archives, Kew, London TW9 4DU, or email: [email protected].
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