Philippine cement sales growth slows in 3Q16

While cement sales growth in the Philippines slowed in 3Q16, continued construction activities saw 9M16 cement sales record double-digit growth. Nine-month sales increased 10.1 per cent to 20.12Mt, according to Cement Manufacturers Assocation of the Philippines President, Ernesto Ordoñez.

“The year-to-date increase shows the overall continued uptrend in government infrastructure spending, as well as the private sectors’ increased contribution due to confidence in the Philippine government,” Mr Ordoñez said.

In 3Q16 cement sales rose by 5.4 per cent to 6.72Mt, significantly less than the 12.8 per cent YoY rise noted in 1Q16 and the 8.8 per cent reported in 2Q16.

“The third quarter increase was not as large for two main reasons. First, the weather is not as favourable this year. According to Pagasa, El Niño last year caused the below normal rainfall which is conducive to construction.  But this year, rainfall is normal and above normal because of no El Nino,” Mr Ordoñez said.
“Second, the third quarter 2015 had high base because of accelerated spending in anticipation of the 2016 elections, whereas there is no such election prospect in the third quarter this year,” he added.