The deepening U.S. recession, global commodity and energy price weakness, combined with a less than confident Canadian consumer are offering more than enough recessionary drag on all provincial economies to impact Canadian cement consumption, according to a recent PCA forecast.
Global deterioration in trade has hit Canada hard, particularly with the U.S., its main trading partner. PCA expects total portland cement consumption to decline 22.8 percent this year, followed by a 3.1 percent decline next year.
Although the Canadian government has approved infrastructure stimulus funding, PCA believes the programs are developing at a pace that is too slow to have a meaningful impact in 2009. Whatever stimulus funding does trickle out will at least prevent provincial growth from slipping further.