The US Portland Cement Association (PCA) has revised its forecast for 2015, saying that growth will continue but at a slower pace than anticipated at the beginning of the year.
“A slowdown in cement intensity is a significant contributor to the revised forecast,” said Edward J. Sullivan, Chief Economist and Group Vice President at PCA. “The main indicators pointing to lower intensity levels are uneven regional construction activity, a slowdown in the number of starts, and the increase use of supplementary cementitious materials in concrete.”
The new growth figure is 3.5% for 2015, and 5% and 5.7% in 2016 and 2017, respectively.
Lower oil prices have reduced construction activity in states such as Texas and North Dakota that are dependent on oil revenues. Sullivan stated that the underlying economic fundamentals are still strong, with gains in job creation in excess of 225 000 net new jobs each month and unemployment below 6%. This means greater consumer spending power, stronger state and local tax receipts, all of which contribute to construction spending.
Adapted from press release by Katherine Guenioui
Read the article online at: https://www.worldcement.com/the-americas/01122015/pca-revises-2015-forecast-88/