The latest figures from the Plumbing & Heating Merchant Index (PHMI) report show that the total value of sales by specialist plumbing & heating merchants increased by +2.6% in April 2023 compared to April last year.
However, this growth was due to rising prices (+7.7%) while volumes decreased by -4.7%.
With one trading day less in April 2023, like-for-like sales increased by +8.3% compared to April 2022.
On a month-to-month basis, Value Selling in April was -20.5% lower than in March. Volume fell -19.1% while prices fell -1.7%. With five trading days fewer in April, like-for-like sales increased by +1.5%.
The total value of sales in the last three months, February 2023 to April 2023, was +5.9% higher than the same period last year. Volumes fell by -2.1% while prices rose by +8.2%. With one trading day less in the last three-month period, like-for-like sales increased by +7.7%.
In the 12 months from May 2022 to April 2023, the value of sales of plumbing and heating dealers was +9.3% higher than in the previous 12-month period (May 2021 to April 2022). Volumes remained unchanged (-0.1%), albeit with a significant price increase of +9.4%. With two fewer trading days in the last period, like-for-like sales increased by +10.2%.
The PHMI index for April was 92.1. With three trading days down, the comparable index was 105.7.
Mike Rigby, CEO of MRA Research, which compiles the report, says: “April sales volumes fell by -4.7% compared to April last year and -19.1% in March this year due to economic uncertainty , high inflation and rising interest rates persist RMI (repair, maintenance and improvement) works for new housing and private housing, particularly in the private sector, were affected.
“Recall that according to the Construction Products Association, private new residential construction and the private residential RMI sector together account for about 40% of total construction output.
“There was some good news for homeowners in April – a pause in the government’s planned hike in the energy price guarantee – but that will do little to ease the pain of those struggling with tracker mortgages and the cost of living that is struggling quickly exceed revenue.
“However, GfK’s long-term consumer confidence index improved by three points in May, the fourth straight monthly rise from the January low of -45. People’s perception of their personal finances over the next 12 months also improved by five points to -8.
“This is an important measure as it underpins our ability to spend on the goods and services that fuel the economy. It points in the right direction, but staying grounded, the headline reading of -27 means we’re still deep in negative territory and still a long way from a recovery.”
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https://www.buildersmerchantsnews.co.uk/Inflation-drives-Aprils-value-sales-growth-in-PlumbingandHeating/56698
