The economic momentum that was gathering steam early in the year has dissipated to a large extent and along with it the potential for an increase in cement consumption in 2010, according the most recent economic forecast from the Portland Cement Association (PCA).
In 2010, PCA anticipates nearly flat growth, with a 0.3% increase in consumption. Although this will be followed by small increases of 1.4% in 2011 and 4% in 2012, a period of sustained growth is forecasted for 2013 and beyond.
“Unfortunately, future gains in construction activity are dictated by labour conditions today,” Edward Sullivan, PCA chief economist said. “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 implies low occupancy rates for the non-residential market.”
While small percentage gains could characterise each of these segments during the next two years, substantive cement consumption volume gains are unlikely to materialise in until 2013. This implies a phase of cement consumption reflecting only modest growth for the near term.
Read the article online at: https://www.worldcement.com/the-americas/08112010/cement_consumption_hindered_by_slow_economic_recovery/