PCA Chief Economic and Group Vice President Ed Sullivan has released his autumn forecast, which is consistent with the earlier spring forecast. Growth of 7.9% y/y is predicted for US cement consumption this year, while additional gains are expected in 2015 and 2016.
The forecast indicates considerable evidence that the economy’s growth path has strengthened from gains in the labour market, low consumer debt, and increased consumer wealth.
“Through July, year-to-date cement consumption is up 8.4 percent,” PCA Chief Economist and Group Vice President Edward Sullivan said. “The pace of cement consumption has clearly strengthened from earlier in the year.”
Real GDP growth is expected to average more than 3% over the forecast period. With stronger economic progress, residential and nonresidential construction should strengthen, state fiscal conditions improve and public construction will eventually become a contributor to increases in cement consumption. PCA forecast risks are believed to be on the upside.
“It appears that the fundamentals are in place to support sustained gains in cement sales activity,” said Sullivan. “For example, although total home sales are expected to remain flat in 2014, we see a 13 percent acceleration next year.”
Adapted from press release by Katherine Guenioui
Read the article online at: https://www.worldcement.com/the-americas/11092014/pca-maintains-growth-expectations-in-autumn-forecast-465/