Plumbing and Heating Merchant Index data shows August 2026 merchant value sales rose 1.8%, but volume sales fell 5.4% year-on-year amid 7.6% price hikes.
The latest Plumbing & Heating Merchant Index (PHMI) report reveals a continuing squeeze on the UK trade sector. Adjusted like-for-like value sales through specialist plumbing and heating merchants rose by 1.8% in August 2026 compared to August 2025. However, this headline revenue increase was driven entirely by price inflation rather than higher activity, as year-on-year volume sales fell by 5.4% over the same period while average prices increased by 7.6%.
The data underscores the ongoing shift within the merchant supply chain, where total cash turnover remains stable or slightly elevated even as physical product output contracts. For plumbing and heating installers, higher material costs have absorbed client budgets, resulting in fewer total units, boilers, and fittings moving through merchant counters despite higher invoice totals.
What does this mean for a UK tradesperson or DIYer actually buying this kit — does it change what they should pay, buy, or watch out for?
The sharp 7.6% price increase means heating installers and plumbers must carefully review their quote validity periods. Fixed-price quotes given to domestic clients six months ago may now severely erode profit margins if wholesale merchant prices continue to track upwards. Installers should audit prices across major trade outlets such as Toolstation, Screwfix, and local independent plumbing merchants before submitting estimates. Furthermore, with physical volume sales down 5.4%, contractors should consider holding leaner vehicle stock for standard brassware and copper tube, relying on merchant counter availability rather than tying up working capital in inflated inventory.
Reported by Builders Merchants Journal — original article
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