The latest Builders Merchants Building Index (BMBI) from trade body BMF show prices fell during the second quarter of this year by 3.3% compared to the first three months of the year.

Total sales in Q2 were 7.6% higher with the increase due to stronger volumes rather than price inflation for the first time in a year.

Compared to the same period last year Q2 sales were 4.1% lower and price growth 10.9% higher.

John Newcomb, CEO of the Builders Merchants Federation said: “Challenges continued for the construction industry in the second quarter of the year, with house building feeling the effect of rising mortgage rates which are now at a 15 year high.

“While the BMBI shows total value sales in Q2 2023 were down on the same period last year, one positive we can take from the data is that merchant trading has seen the first signs of volume recovery in the second quarter, with price growth now slowing.

“Hopefully, this is the first step towards market normality down the line.”