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PCA forecasts marginal consumption improvement for the next two years

 

World Cement,

Despite recovery momentum in late 2010, the US economy is again in a slowdown. This will weaken construction activity and restrain gains in cement consumption until 2013, according to the most recent economic forecast from the Portland Cement Association (PCA).

The PCA downgraded its cement consumption forecast to 0.2% in 2011, 0.4% in 2012, with a significant 16.4% increase in 2013. According to the report, uncertainty regarding highway spending legislation and government policy related to the debt crisis will cause a negative drag on construction activity for the next few years.

“Our previous forecast had assumed the new highway bill would be 20% higher than existing levels, but we now believe the funding will remain at current levels,” Edward Sullivan, PCA Chief Economist said. “Lack of highway funding and reduced consumer, business and bank confidence due to the debt crisis will all slow down construction recovery.”

According to Sullivan, economic recovery from the Great Recession will be led by a strengthening of confidence in these areas. Without a sustained improvement, private sector fundamentals such as job creation, investment and ease in lending standards will not be released in full force and commit the economy to a path of improvement.

 

The Road to Recovery

Ed Sullivan, Portland Cement Association, USA, provides an overview of projections for the US economic recovery and its impact on the construction industry.

Latest forecast from PCA anticipates marginal increase in 2011

While the economic recession is over and economic growth is strengthening, the construction recession may not run its course for another 18 months, hindering an improvement in cement consumption for the next two years according to the most recent economic forecast from the PCA.

PCA applauds the “Energy Tax Prevention Act of 2011”.

The Portland Cement Association has announced its approval of the “Energy Tax Prevention Act of 2011”, which will bar the use of the Clean Air Act in the regulation of greenhouse gas emissions.