PCA forecasts marginal consumption improvement for the next two years
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.
Read the article online at: https://www.worldcement.com/the-americas/26072011/pca_forecasts_marginal_consumption_improvement_for_the_next_two_years/
You might also like
The World Cement Podcast - CCS in the UK
Dr Diana Casey, Executive Director of the Mineral Products Association joins the World Cement Podcast to explore the role of CCS in decarbonising UK cement industry.
Tune in to the World Cement Podcast on your favourite podcast app today.