Economic uncertainty, inflation and slower construction activity are concerns on the economic horizon, Sullivan says.
Economic uncertainty, inflation and slower construction activity are concerns on the economic horizon, Sullivan says.
Economic uncertainty, inflation and slower construction activity are concerns on the economic horizon, Sullivan says.
Economic uncertainty, inflation and slower construction activity are concerns on the economic horizon, Sullivan says.
Economic uncertainty, inflation and slower construction activity are concerns on the economic horizon, Sullivan says.

Post-Election Political Uncertainty Brings Lower Cement Consumption Forecast

Dec. 7, 2016
U.S cement consumption is on track for 2.7-percent growth in 2016 according to the Portland Cement Association in a downward revision of a previous annual growth estimate of 4 percent announced earlier this year.

U.S cement consumption is on track for 2.7-percent growth in 2016 according to the Portland Cement Association in a downward revision of a previous annual growth estimate of 4 percent announced earlier this year. PCA also revised its 2017 U.S. cement consumption forecast to 3.1-percent growth from its previously stated forecast of 4.2 percent because of a combination of post-election political uncertainty, inflation and slower construction activity as negative pressures on the economic horizon.

     “President-elect Trump continues to shape his cabinet and policies, thus making it difficult to forecast potential outcomes at this point,” said PCA chief economist Ed Sullivan. “The impact of uncertainty is expected to be compounded by increased inflationary expectations which will impact long-term bonds and loans, such as mortgages -- to the detriment of cement consumption.”

     PCA offered three potential political scenarios in its forecast that could shape policy priorities, taking into account various levels of political support from Congress, as well as possible shifts in the president-elect’s previously announced policy objectives that impact cement consumption.

     “While these could be considered high-medium-low pathways, each are predicated on one of three political scenarios,” Sullivan said. “In reality, the laws of permutation suggest there are many more potential outcomes. Ultimately, we will have to reexamine the road ahead in the months ahead.”