PCA forecasts 3% growth in cement consumption for 2018
9th April 2018
The USA-based Portland Cement Association (PCA) has released its Market Intelligence Spring Forecast and envisions modest growth for cement consumption over the next two years, increasing by 2.8 per cent in 2018 and 2019. In 2020 consumption is expected to rise four per cent as positive impacts from potential federal infrastructure spending are likely to come into effect, according to the PCA report.
The PCA analysis suggests that infrastructure spending is not likely to occur until the 4Q19, due a number of factors which are still to take place.
“[I]t will take time to implement a construction infrastructure program from passage in congress to the first shovel. This is an aspect often neglected by most economists,” said Ed Sullivan, PCA senior vice president and chief economist.
Despite expected increases in interest rates and inflation, consumer debt is low. This is anticipated to lead to a potential growth in consumer spending.
“These factors suggest a modest acceleration in real GDP, construction markets and cement consumption,” said Mr Sullivan.