PCA forecast sees continued growth

PCA forecast sees continued growth
24 November 2015

During the PCA Board of Directors meeting last week, PCA Chief Economist and Group Vice President, Ed Sullivan, reported that 2015 cement consumption in the United States will continue to grow, but at a slower pace than predicted at the beginning of the year.

The US cement market is expected to increase by 3.5 per cent in 2015, followed by larger rates of growth in 2016 and 2017, of five percent and 5.7 per cent, respectively.

The PCA said in a statement that the slowdown in cement intensity is a significant contributor to the revised forecast. Cement intensity refers to the tons of cement per dollar of construction activity. According to Mr Sullivan, the main indicators pointing to lower intensity levels are uneven regional construction activity, a slowdown in the number of starts and the increased use of supplementary cementitious materials in concrete.

In addition, lower oil prices have significantly reduced construction activity in energy-dependent areas such as Texas and North Dakota.

Going forward, Sullivan stated that the underlying economic fundamentals are still strong, as reflected in the labour market. Sustained gains in monthly job creation in excess of 225,000 net new jobs monthly, in the context of sub-six per cent unemployment translates into more consumer spending power, stronger state and local tax receipts – all leading to stronger construction spending in 2016.

Published under Cement News

Tagged Under: Consumption PCA USA