Builders’ merchant sales volumes fell significantly year-on-year in February 2026, highlighting continued pressure on construction demand despite rising prices, according to the latest Builders Merchant Building Index (BMBI).
The data shows like-for-like sales volumes dropped by -10.6% compared with February 2025, while value sales were down -4.3%. Price inflation partially offset the decline, with prices increasing by +7.0% over the same period.
With no difference in trading days, unadjusted figures mirrored the like-for-like results, confirming a sustained slowdown in activity across the repair, maintenance and improvement (RMI) sector.
Volume decline signals weakening construction demand
The downturn in volumes reflects reduced purchasing across key construction materials, despite some category-level resilience. Of the 12 product categories tracked, six recorded growth in value terms, led by Renewables & Water Saving, which increased +19.6%.
Among the largest categories, Timber & Joinery Products saw marginal growth of +0.3%, outperforming the overall market. In contrast, Heavy Building Materials declined by -8.4%, while Landscaping recorded the steepest fall at -8.5%.
Quarterly and annual performance remains subdued
Over the three months from December 2025 to February 2026, like-for-like value sales were -3.3% lower than the same period a year earlier, indicating continued weakness through the winter period.
Looking at the longer-term trend, the 12 months to February 2026 showed marginal growth, with value sales up +0.4% year-on-year. Volumes rose slightly by +0.2%, while prices increased +0.3%, suggesting a largely flat market overall.
However, early 2026 performance remains under pressure. In the year-to-date period (January to February), value sales were -3.4% lower than the same period in 2025, with volumes down -8.8% and prices up +6.0%.
Consumer confidence and energy costs weigh on market
Mike Rigby, Managing Director of MRA Research, which produces the BMBI report, linked the downturn to wider economic uncertainty and geopolitical disruption.
“As I write this it’s Day 47 of the Iran War and it’s hard to see an end. Bewilderingly, Trump’s answer to Iran’s refusal to capitulate is to blockade their blockade so the Straits of Hormuz are totally sealed off to everyone. The rest of the world is being held over a barrel (an oil one). About one month from now, when average stocks run out, the global economy will be facing the consequences of an actual gas and oil shortage of about 10 million barrels a day, according to Wood Mackenzie, the global leader in data, analytics and insights for the energy and natural resources industry.
That’s equivalent to an economic hit like Covid. Some countries are already suffering shortages and knock on effects.”
He added that weakening consumer sentiment is directly impacting demand for home improvement work:
“The latest GfK Consumer Confidence Index shows a 2-point fall in March, to -21 – the third month of decline since January. The biggest drop was in views of the general economic situation over the next 12 months, which fell 6 points to -37. The major purchase index, indicative of potential spending on home improvements, tumbled 4 points to -18, while the savings index increased 6 points to 27. Consumers are very concerned about the impact of the war on the economy and are favouring money in the bank over spending.”
Renewables demand offers growth opportunity
Despite the overall downturn, the report points to growing demand for energy-efficient solutions, driven by rising fuel costs and efforts to reduce reliance on volatile energy markets.
“But there are some green shoots for merchants with a surge in consumer interest in electric vehicles and home energy upgrades, as consumers try to uncouple from erratic oil and gas prices.
Octopus Energy and British Gas have both seen record increases in solar and heat pump enquiries. Paul Haynes, BAXI’s Product, Solutions & Marketing Director, BMBI’s Expert for Heating & Hot Water Solutions, says the heat pumps market was up +25% in 2025 year on year.”
The findings suggest that while traditional construction demand remains under pressure, opportunities in renewables and energy efficiency could provide a route to recovery for merchants and suppliers operating across the UK construction supply chain.
