PCA: political risks could derail US recovery

PCA: political risks could derail US recovery
Published: 11 October 2013

Tagged Under: USA Construction 

US economic growth and employment levels continue to improve and PCA forecasts that this trend will carry on through 2013. However, the association warns that domestic political risks do have the potential to undermine this improvement.

A recent article by the PCA notes that the Federal government shutdown (depending on its duration), along with long-term debt ceiling and budget sequestration actions could present near-term weakness. In terms of construction, the residential market is healing and is expected to be the largest construction growth contributor this year and play an important role in job creation.

Based on PCA sector composite rankings, North Dakota, South Dakota, Texas, Iowa, and Nebraska have the strongest cement market fundamentals. Rhode Island, Nevada, New Jersey, Illinois, and Missouri currently have the weakest. A total of 30 states experienced improving employment levels in August – a decrease from July’s count of 34. New York (30,000) and California (29,000) led job creation while the strongest gainers on a percentage basis were Nevada and Louisiana. As the housing recovery expands, the South and West are once again expected to lead job creation, the PCA anticipates.