Ready-mixed concrete sales slump in London

Aaron Morby 2 weeks ago
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Construction materials producers have warned there is “no sign of recovery” in demand after concrete, aggregates and mortar sales fell again at the start of the year.

Credit:VGayman
Credit:VGayman

Latest figures from the Mineral Products Association show UK demand for essential construction materials dropped further in the first quarter of 2026, extending a four-year downturn.

Mortar sales, a key indicator of house building activity, fell 2% on the previous quarter and were 5.4% down year-on-year.

Ready-mixed concrete sales slipped 0.5%, while primary aggregates fell 0.8%. Asphalt was broadly flat, down 0.1%, after a short-term boost from road maintenance work ahead of the financial year end.

The slump has hit London particularly hard, where ready-mixed concrete volumes over the past 12 months were 47% lower than in 2022.

MPA director of economic affairs Aurelie Delannoy said: “The Q1 data largely predates the recent escalation in global risks and energy prices, but it shows that UK construction demand was still falling as costs were starting to rise.

“Since February, early indications from MPA members point to higher fuel and production costs, alongside emerging signs of project delays and pauses, particularly on some lower-margin housing schemes.”

House building and commercial work continue to drag down demand, with higher borrowing costs, weak confidence and affordability pressures holding back investment.

Infrastructure remains the only bright spot, with HS2 and Sizewell C helping to support aggregates demand. Crushed rock volumes rose 1% in Q1, but not enough to offset weakness elsewhere.

MPA executive chair Chris Leese said: “There is no sign of recovery in the Q1 data, and this is likely to be further compounded by the economic fallout from events in the Middle East.

“Demand is still falling, and now costs are rising again. That is a difficult combination for any industry, and it raises real concerns about the outlook for construction this year.

“If this continues, we are looking at a fifth consecutive year of decline.”

The MPA is calling for Government action to support housing demand, pump public funding into infrastructure and road maintenance, incentivise private construction investment through a super-deduction and cut costs for the sector.

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