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CPA-1 Plumbing

Getting Better and Better

Fifth Consecutive Quarter of Rising Sales Reported by CPA

More good news has come from the Construction Products Association’s (CPA) latest State of Trade Survey which reports strong growth in sales of construction products in Q2.

It finds that firms are showing increasing signs of optimism for the future and for the first time in five years, product manufacturers stated increases in levels of capital investment across all areas of their business.

Following on from Q1, both heavyside and lightside firms reported increasing cost pressures stemming from wages and salaries. Whereas lack of demand remains a key concern for lightside manufacturers, data from heavy side businesses suggest that capacity pressures may be emerging.

“These results confirm that the construction products industry is firmly on the path of recovery,” stated Kallum Pickering, Senior Economis, CPA. “All firms reported that sales increased compared with the second quarter of last year and, looking forward, no firms expect sales to fall over the coming year. These findings fall in line with the recent broadening of growth across private construction.”

Mr Pickering went on to assert that there were “clear signals” that businesses are looking to capitalise on the positive growth outlook.

However, there was a caveat in his prediction. “Data on cost inflation suggest that wages are beginning to make a significant contribution to rising costs of firms.” The survey showed that 95% of heavyside businesses and 80% of lightside ones indicated that wages and salaries contributed to cost inflation in Q2.

Caption            The CPA reports strong growth in sales of construction products in Q2.

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