Builders’ merchants saw sales decline in the first quarter of 2026, as challenging market conditions continue to weigh on activity across the construction industry.
According to the latest Builders Merchants Building Index (BMBI), total value sales in Q1 2026 were down 3.2% compared to the same period last year. While average selling prices increased by 5.4%, volumes fell significantly, dropping by 8.1%, highlighting the continued weakness in underlying demand.
Quarter-on-quarter performance also softened, with like-for-like value sales 0.6% lower than Q4 2025 and volumes down 3.3%. Over the last 12 months, sales values remained broadly flat, but volumes continued to contract.
Commenting on the findings, John Newcomb, Chief Executive of the Builders Merchants Federation (BMF), said: “Early signs of improvement in construction output in February were quickly reversed after the start of the Middle East conflict in March.”
He continued: The expectation now is that the conflict will further intensify pressures, through rising prices and renewed inflation. This will impact household budgets as well as construction costs and continue to suppress demand for domestic repair, maintenance and improvement work and new housing, two critical areas for builders’ and merchants’ sales.”
Newcomb also called for further action to stimulate the sector, stating: “It is difficult to envisage a significant upturn in the coming year without government action to speed up planning and provide incentives to unlock the housing market.”
The latest figures underline the continued challenges facing both merchants and suppliers, despite hopes of a stronger recovery following a more positive performance in early 2025.
