UK volumes rise

Growth in sales of aggregates, cement and ready mixed concrete in the UK in the third quarter were regarded as a comparative improvement rather than a sustained recovery by the 2897 Mineral Products Association (MPA). According to figures collated by the MPA, sales of aggregates, cement and ready mixed concrete were 3%, 9% and 6% higher respectively than in 2009 but the organisation has pointed out that last year marked a low point for the industry. However, the MPA added that the figures were steady compared with the second quarter results for 2010.

MPA executive director Simon van der Byl said that both the MPA and wider construction improvements recorded need to be viewed in the context of likely declines in construction activity in 2011.  “Everyone needs to take great care in interpreting construction related data for 2010 to date,” he said. “Firstly the figures only reflect a welcome comparative improvement and secondly the 21% cut in public investment set out in the UK’s Comprehensive Spending Review will mean substantial reductions in construction sectors such as health education and roads and will put huge pressure on local authority spending.

“These negative pressures are likely to outweigh what will probably be a slow and uneven recovery in housing, commercial and other private sector construction over the next two years.  In the longer term the private sector and infrastructure projects should deliver strong construction growth, but prospects for 2011 look very depressed.  The possibility that many construction materials sectors and construction in total may experience a double dip recession during 2011 and beyond cannot be ruled out.”