Marshalls told the City today in a trading update: “In the Public Sector and Commercial end market it is encouraging that our lead indicator continues to suggest an increase in the level of demand as we move through 2011.
“In contrast, the Construction Products Association’s latest forecasts, which include the impact of the Comprehensive Spending Review and recent weaker consumer confidence figures, anticipate a 2% fall in construction output in 2011.”
The prediction comes as Marshalls confirmed that the bad weather in December cost the company £5m in lost sales and £800,000 in profits.
Revenue for the year ended 31 December 2010 increased by 4% to £323m.
Fellow industry titan Grafton Group also recorded a 7% jump in UK sales last year while the rate of decline in Ireland slowed with sales down 7% in the second half compared to 16% in the first.
Grafton has also reached outline agreement with Travis Perkins, subject to formal OFT approval, to acquire 10 of their plumbing and heating branches in England and Wales. Nine of these currently trade as PTS and the other as City Plumbing Supplies.