US cement consumption is expected to grow 3.5% during the remainder of 2017 and by the same amount in 2018, the Portland Cement Association says.
Although details on specific federal US policies are not yet fully available, the association is forecasting growth in the years ahead using conservative baseline estimates for factors such as infrastructure spending and tax reform, said Ed Sullivan, chief economist, at the association speaking at its conference in Calgary, Canada.
Sullivan said: “While fiscal stimulus will boost cement consumption, there are other economic indicators that will temper growth.”
“Infrastructure policies also take time to implement, so you could be looking at 11 to 22 months before new projects truly get underway.”
Tax reform will have a key impact on cement consumption, as it drives consumer spending and confidence that play heavily with the housing sector, according to the association.
“When you hire a worker, you hire a taxpayer,” Sullivan said noting that additional funds generated from consumer taxes and spending will help drive moderate growth in public construction and housing markets.
“The underlying fundamentals supporting economic growth are positive, though we’ll maintain a watch on how the US government addresses possible inflation and immigration policy,” Sullivan said. “This confidence in stable, sustained growth in cement consumption is likely to be unchallenged through 2018.”
