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Sales of ready-mixed concrete and asphalt both fell by 6.3% in the first quarter of 2025 compared to the previous quarter, while primary aggregates (crushed rock and sand & gravel) recorded a modest increase of 0.5%.

Mortar sales provided a rare bright spot, rising for a fourth consecutive quarter (by 3.8%) and signalling a degree of improvement in house-building activity.

The MPA said that its latest survey findings reflected the continuing challenges facing the construction sector and its supply chain, including patchy economic growth, cost pressures, planning delays and project cancellations. Ready-mixed concrete demand has fallen to around three million cubic metres per quarter, its lowest level in 60 years.

Infrastructure markets present a mixed picture, the association said. Major projects such as HS2, Hinkley Point C and Sizewell C, alongside several offshore wind projects, continue to support demand for construction mineral products, particularly aggregates and ready-mixed concrete. However, this is offset by weakness in the roads sector. Asphalt sales in Q1 2025 were their lowest since 2013 (excluding the pandemic period) with road schemes cancelled or delayed.

House-building activity, while still below historical norms, is showing some signs of recovery, with mortar sales having now risen for four consecutive quarters.

The MPA is also concerned about US president Trump’s trade war against the rest of the world. The introduction of new US trade tariffs is expected to negatively impact UK growth prospects, construction activity and prospects for the supply chain. While the largely domestic mineral products sector is resilient to direct trade exposure, there are risks that cement imports – already representing nearly a third of the UK market – could rise further as materials originally destined for the USA (e.g., from Turkey) seek new markets, the MPA said.

All in all, the MPA paints a gloomy picture: global trade disruptions, reduced investor confidence, and renewed inflationary pressures are compounding existing headwinds for construction and mineral products markets, it says. The pipeline of construction projects currently stalled due to low business confidence is likely to remain on hold for longer, delaying progress in the housing market, in large commercial and industrial construction, and in infrastructure where private investment is critical. At the same time, the potential for an even more cautious approach to interest rate cuts by the Bank of England risks undermining the fragile housing recovery, which has underpinned recent gains in mortar sales.

Aurelie Delannoy, director of economic affairs at the Mineral Products Association, said: "The latest data show that mineral products markets continue to struggle under the weight of heightened economic uncertainty and delayed investment decisions. While there are early signs of improvement in house-building, the broader construction pipeline remains fragile. New global risks, particularly the potential impact of US trade tariffs, add further pressures at a time when the UK urgently needs a resilient and competitive domestic supply chain to support the government’s green growth ambitions."

Chris Leese, executive chair of the Mineral Products Association, added: "Construction cannot happen without a secure supply of mineral products, yet domestic production faces mounting pressures from both home and abroad. Without a clear commitment to supporting UK industry through competitive energy costs, better planning, and a public procurement policy that prioritises domestically produced mineral products like cement and concrete, the risk is that essential mineral extraction and products manufacturing capacity will be lost, just when the country needs it most. Government must act now to strengthen the foundations of growth and support an industry that supplies the essential materials underpinning the UK’s ambition to build and grow the economy."

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