Welcome to the third edition of our bi-monthly Market Insights blog which brings together all the key aspects of the more detailed Market Insight Reports that I provide. I will be producing this overview and summary every other month to ensure that you don’t miss any of the key information we are sharing with members.
Sales of construction and earthmoving equipment continued on an upward trend in March and were 11% above March 2024. Sales were just under 3,000 units and reached the highest level for an individual month since the first half of 2023. For the first quarter of the year, sales were just under 6,900 units and were 8% above Q1 2024 levels. After two years of decline in 2023 and 2024, equipment sales this year are forecast to show single figure growth reflecting an improving market situation.
Members can view the full report on the website.
The April sales update will be published in the last week of May, so keep an eye out for that report.
The latest quarterly update on UK imports and exports of construction equipment was published in February and was recorded in the March blog. As a reminder, exports saw a modest pick-up in Q4 of 2024, but tonnage of equipment shipped last year still ended up at 10% below 2023 levels. The USA remained as the leading destination, accounting for over 26% of total exports. Imports of equipment remained on a downward trend in Q4 and ended up at 9% below 2023 levels for the whole of last year. China and Japan were the two leading sources for equipment in 2024, accounting for 30% of total imports.
UK trade in construction equipment in Q1 2025 should be available at the end of May. The main international issue at the moment is uncertainty over possible tariffs being imposed on exports of equipment to the USA, which is causing concern within the industry.
The Purchasing Managers Index (PMI) provides a summary of all things construction from bricks to cement and is a good indicator of what is happening in the wider sector.
The Index in February showed a fall for the second month running and fell to the lowest level seen for five years at 44.6. Respondents highlighted poor demand conditions and delays to decision making in a subdued economic environment . The Housebuilding sector was the weakest in February, while the Commercial sector showed some resilience, but still indicated declining activity.
The PMI for the UK construction market for April can be viewed here.
The Office for National Statistics (ONS) have published the latest data on construction activity. Output showed modest growth of 0.4% in February after showing declines in the previous two months. Better weather in the second half of the month seems to have helped with improving levels of activity.
On a year-to-date basis, construction output in the first two months of the year was 0.8% higher than the same months last year. As a reminder, output in 2024 showed a 0.4% increase on 2023 levels. This increase in activity last year was very much a result of growth in repair and maintenance work which showed an 8.5% increase on 2023 levels. In contrast, new work in 2024 was 5.3% lower than the previous year.
Further to this, the Construction Products Association (CPA) published their Spring forecast in April. This anticipates modest growth in construction output of 1.9% this year, which is a slight reduction on the Winter forecast which indicated a 2.1% increase in output in 2025. More significant growth is expected next year at 3.7%, but this has also been downgraded from an earlier forecast of 4.0%. The forecasts for lower levels of activity reflect weaker economic growth prospects, higher inflation for longer and subdued business confidence.
The latest construction market update published by Glenigan in April indicated a modest improvement on the February report. In the first quarter of the year, compared with Q1 last year, it indicated a 6% increase in Planning approvals. However, Contract awards declined by 12% and Project starts decreased by 21%.
There are many other key reports and indicators available on the Market Insights Area of the CEA website here. These are all Member Only resources, so I encourage you to take a look.
I trust you find this summary useful and a good reminder of all the key industry statistics and indicators that are available to as part of CEA membership. If there are any other measures or metrics you would like me to take a look at please don’t hesitate to get in touch.