The economic momentum that was gathering steam early in the year has dissipated to a large extent, and along with it, so has the potential for an increase in cement consumption in 2010, according to a recent economic forecast from the Portland Cement Association. For the calendar year 2010, PCA predicts nearly flat growth, with a 0.3 percent increase in consumption from the year before.
This is projected to be followed by small increases of 1.4 percent in 2011 and 4 percent in 2012. A period of sustained growth is only forecasted for 2013 and beyond. “Unfortunately, future gains in construction activity are dictated by labor conditions today,” said PCA chief economist Edward Sullivan in a PCA press release.
“Slow job growth leads to slower home purchases and start activity, it undermines the speed at which state deficits can heal impacting public construction, and it implies low occupancy rates for the nonresidential market.”
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