US cement consumption is forecast to increase by 7.9% in 2014 with additional gains in 2015 and 2016, according to a new
The tipped 7.9% rise this year, compared to 2013 levels, indicates considerable evidence that the US economy's growth path has strengthened from an improved labour market, low consumer debt, and increased consumer wealth.
“Through July, year-to-date cement consumption is up 8.4%," says PCA chief economist and group vice president Edward Sullivan. The pace of cement consumption has clearly strengthened from earlier in the year.”
The association expects real gross domestic product growth to average over 3% annually during the remainder of the forecast horizon. With stronger economic progress, residential and non-residential construction should strengthen, state fiscal conditions improve and public construction will eventually become a contributor to increases in cement consumption. Association 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," says Sullivan. "For example, although total home sales are expected to remain flat in 2014, we see a 13% acceleration next year."
