Price inflation and not volume is driving sales of plumbing and heating products through merchant outlets, which saw 10.8% growth in Q3 of this year compared to the same time last year.
The latest Plumbing & Heating Merchant Index (PHMI) report shows that volume sales remained flat, with just a 0.3% rise compared to last year. With one less trading day this year, like-for-like sales were 12.5% up. Year-to-date value sales from January to September 2022 were 7.1% above the same period a year earlier.
Sales in the 12 months to September 2022 were 3% higher than the same period a year before (October 2020 to September 2021). Volume sales were 4.9% lower while prices were up 8.3%. With two less trading days in the most recent period, like-for-like-sales were up +3.8%.
September 2022 value sales were 9.1% above the same month a year ago, but volume sales were down 3%, with price inflation of 12.4%.
Mike Rigby, CEO of MRA Research, which produces the report, comments: “What we are seeing in quarter three seems to mark a return to normal seasonal trends, with the traditional ‘heating season’ giving specialist plumbing and heating merchants a bounce in sales. Double digit growth year-on-year looks remarkable given the country’s economic outlook and record lows in consuming confidence, so it’s no surprise to find that growth is essentially the result of inflation as volumes remain flat.
“RM&I work has been knocked back in the mid to budget sectors as the affordability crisis forces younger and less well off homeowners to prioritise spending, but mainly older homeowners who have paid off their mortgages or are near to doing so are still spending. Both energy and water saving products are expected to benefit as property owners seek to minimise bills with improved energy efficiency and increasingly, water efficiency too.”
