Imports peaks and inflation potentials

Imports peaks and inflation potentials

BLOG · BY TTF CEO, DAVID HOPKINS · 17 February 2021

Optimism in the UK’s vaccination programme to aid a stronger economic recovery in 2021 is being mirrored in forward-looking indicators in the Construction Product Association’s Q4 Construction Survey released this week.

The report notes that despite broad expectations that the wider economic recovery will gather pace and drive construction activity, Q4 also marked a noticeable increase in inflationary pressure for supply chains. It is not just the UK looking to build back better.

Construction has been leading a recovery across developed economies including the US and Europe, as well as developing economies in Asia, which, in turn, has led to a spike in global demand for raw materials. Coronavirus stimulus packages may continue this trend.

Member countries of the EU are now submitting plans on how they would use the 672.5 billion-euro in loans and grants set aside for the bloc’s Coronavirus recovery fund, and the new Biden administration in the US is looking to push through a $1.9 trillion-US Stimulus Plan.

Meanwhile, timber and panel imports reached 1.08 million m3 in November 2020, which was the highest monthly total since the October 2007 volume of 1.04 million m3. This was the second consecutive month where timber and panel imports were above the 1 million m3 mark.

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