Indonesian domestic cement consumption rose five per cent in November on a year earlier and was 35 percent higher than in October, the Association of Cement Producers said Thursday.
The association’s chairman, Urip Timuryono, said cement consumption bounced back to 3.38Mt in November after falling to 2.5Mt in October. The low base in October was largely due to a lengthy holiday, which meant there were fewer working days in the month.
In November 2006, domestic cement consumption was 3.21Mt.
Economists see cement consumption as a strong early indicator of how well the economy is growing as it shows how the construction and credit sectors are faring.
Domestic cement consumption in the first 11 months of this year grew 6.8 percent to 31.08 million tons, Timuryono said.
"For next year, we still expect domestic consumption to grow five to six percent," Timuryono said, adding that the main concern for 2008 was the impact of soaring oil prices on the cost of producing cement.
"If the January data show significant impact from oil prices on cement consumption, we may revise the projection," he said.