NEW figures from the Mineral Products Association (MPA) show a ‘modest’ improvement in sales of construction aggregates and asphalt for Q2, 2024.
However, the MPA’s latest quarterly volumes survey, also shows growth has not yet returned to each individual mineral products market, with concrete sales ‘still in the doldrums’.
Asphalt volumes increased by 5.3% to 5.1 million tonnes in Q2, crushed rock sales rose by 4%, and mortar sales grew by 2.8% compared to the first three months of the year.
The MPA said these seasonally adjusted figures reflect a ‘stabilisation’ in key markets following a notably poor first quarter, which saw sales drop to their lowest levels in over a decade.
Ready-mixed concrete sales dropped by a further 1.1% to three million cubic metres in Q2, the lowest in Britain since the 1960s. Sand and gravel sales fell by 10%.
The MPA added that these declines underscore the ‘persisting weakness’ in the construction sector, particularly new housing and infrastructure projects. Slower than expected interest rate cuts by the Bank of England and high mortgage rates continue to dampen housebuilding activity, whilst key areas of infrastructure remain beset by high costs and planning delays.
Aurelie Delannoy, MPA director of economic affairs, said, “Investment uncertainty is hurting our sector and the broader construction supply chain. The latest cancellation of the Stonehenge tunnel and Arundel bypass schemes, following the previous cancellation of the northern leg of HS2, further erodes business confidence.
“Likewise, new government reviews on transport and the hospital building programme add to this uncertainty, turning any attempt to forecasting and business planning into parody. This worsens the already weak outlook for the industry.
“The chancellor must urgently address these issues by providing clear policies to reduce uncertainty and spur growth in line with the government’s ambitions. This includes improving delivery on critical infrastructure investment and upgrades, and ensuring that the planning system supports the domestic supply of minerals and mineral products, which is essential for the wider construction and economic recovery.”
