The figures from the latest Builders Merchant Building Index (BMBI) report for Q2 2026 reflect a subdued construction market, with year-on-year sales of building materials down in volume but up in price.
This continues the trend from Q1, with activity hampered by Middle East tensions affecting energy and oil prices, restrictive interest rates, and a lack of client and consumer confidence.
Quarter 2 2026 v Quarter 2 2025
Looking at the quarter in more detail, year-on-year total value sales for Q2 2026 fell by -1.2% compared with Q2 2025, with no difference in trading days between the two periods. However, volume sales fell noticeably, down by -6.6%, whereas average prices increased by +5.8%.
Heavy Building Materials, the largest of 12 product categories, was a key driver of these results, with value sales down -2.6% in Q2. Heavy Building Materials also recorded the largest decline in value sales (-4.6%) for the first half of 2026. Sales volumes were down by -10.4% compared to the first half of 2025, while average prices rose by +6.5%. Bricks and blocks were the most important negative contributors in this category.
Value sales in Q2 2026 for the second largest category, Timber & Joinery Products, were flat (0.0%) compared with the same period in 2025, but Renewables & Water Saving was the weakest category at -3.8%. Value sales did increase in three of the smaller categories: Services (+7.3%), Workwear & Safetywear (+4.5%) and Miscellaneous (+2.3%).
Quarter 2 2026 v Quarter 1 2026
Comparing the first two quarters of 2026 provides some hope for the future, with quarter-on-quarter growth in 7 of 12 categories.
With two fewer trading days in Q2 2026, unadjusted value sales for the Total Builders Merchants Market were up +14% on Q1 2026. Volume sales were up +16%, while prices fell by -1.7%. However, the seasonal category of Landscaping (+58%) was the main driver for the increase. Only one other category, Heavy Building Materials (+16.1%), outperformed the Total Market but, as noted, its year-on-year growth remains negative.
Like-for-like value sales (adjusted to remove the impact of trading day differences) were +17.8% higher than in the previous quarter. Like-for-like volume sales increased by +19.8%.
Moving Annual Total: July 2025 to June 2026 v July 2024 to June 2025
Value sales in the latest 12-month period were down -1.5% compared to the previous 12 months, while volume sales fell by -4.3%, with no difference in trading days. Prices increased by +2.9%.
Seven of the 12 categories sold more by value, led by Renewables & Water Saving (+8.5%). Timber and Joinery Products saw a marginal increase, up +1.0%. However, Landscaping, at -1.4% was amongst those selling less, while Heavy Building Materials was the weakest category by value, falling by -3.7%.
Emile van der Ryst, Key Account Manager – Trade & DIY at NiQ GfK, said: “By the end of June 2026, the wider UK economy remained in a state of minimal growth, which continues to hamper the construction sector. For the remainder of 2026 there is an expectation that merchants remain under pressure, with volumes recovering only gradually.
“Pricing should continue to cushion value, but unless housing, RMI and project confidence improve, the sector is likely to finish the year modestly down in value, with heavy-side categories still the clearest risk.”
BMF CEO John Newcomb commented: “Weak demand continues to weigh on building materials sales. Residential remains the biggest concern, while economic uncertainty, affordability pressures and high costs continue to hold back investment.
“Delivering planned investment in public and social housing, alongside measures to restore confidence in private housing, is essential to turn expectations into actual projects and achieve the growth we all want to see.”
The report is produced by MRA Research. MD Mike Rigby stated: “Overall construction output is anaemic, as the latest ONS data reveals a +0.3% increase in Q2 output compared to Q1 but -2.0% lower than Q2 2025. Five out of the nine construction sectors grew in Q2 2026 with infrastructure new work, the strongest up, +1.9%.
“Despite monthly construction output falling -0.1% in June, following a decrease of -0.8% in May, and a decrease of -0.1% in April, the overall level of output in Q2 was higher than in Q1, the ONS says, because the fall in April 2026 followed a particularly strong March.”
Mike continued: “Housebuilding continues to meet significant headwinds. The latest National House Building Council (NHBC) numbers put Q2 new home registrations down -4.0% year-on-year, with cost pressures and geopolitical uncertainty affecting house builders’ performance.
“The prolonged dry weather has also thrown a new issue into the mix – water. Analysis by Public First, commissioned by Water UK, shows that England only has sufficient water for 420,000 of the 1.5 million homes the government wants built during its parliamentary term.”
He added: “The appointment of Andy Burnham as Prime Minister has lifted spirits though. Alongside England’s World Cup success and months of wall-to-wall sunshine, the GfK Consumer Confidence Index is looking more optimistic, with August’s figure showing a three-point overall improvement compared to July, and a five-point increase in people’s views on the general economic situation over the coming 12 months.
“Better yet, there was a five-point jump in the Major Purchase Index; a good omen for residential RMI projects.”
The full Q2 2026 BMBI report is available to download at www.bmbi.co.uk.
Main image (top): Q2 2026 BMBI Highlights Infographic – Like-for-like value sales
Set up and run by MRA Research, the BMBI – a brand of the Builders Merchants Federation – is a monthly index of builders’ merchant sales, and widely viewed as the most reliable, up-to-date proxy for Repair, Maintenance, and Improvement (RMI) activity in the UK.
The index is based on actual sales from NiQ GfK’s Builders’ Merchant Point of Sale Tracking Data, which captures value sales out to builders from generalist builders’ merchants, accounting for 88% of total sales from builders’ merchants throughout Great Britain.
An in-depth review, which includes commentary by sector experts, is produced each quarter.
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