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[Oct 2005]
Weak Housing Market Hits UK Construction Product Sales
A slowdown in new house construction and home improvement work in the UK market, combined with a lack of road and rail investment, has depressed construction activity over the last three months, according to the Construction Products Association (CPA).
The CPA's latest Construction Activity Barometer recorded a continued slowdown in the sales of construction products in the third quarter of 2005 compared to the same period of last year. At an index of 44, companies' responses were significantly below the 50 'no change' mark.
Commenting on the survey's findings, CPA Economics Director Alan Wilen said: "Manufacturers report a weakening in sales volumes as the slowdown in house sales and house price inflation over the last 12 months, coupled with greater consumer caution, has curbed households' appetite for home improvement works and restricted the flow of new housing projects. In addition many heavyside manufacturers report that sales remain below the levels of a year ago due to a lack of new transport infrastructure projects.
"The construction products industry remains cautious about the final three months of 2005. An index reading for all manufacturers of 44 indicates that firms continue to expect sales volumes during the fourth quarter to remain down on a year ago, with heavyside manufacturers especially cautious."
www.constprod.org.uk
ENDS