PCA’s Sullivan: Cement consumption will lag GDP growth

Sources: Portland Cement Association, Skokie, Ill.; CP staff

The Portland Cement Association Fall Forecast paints a minor 2019-2021 growth curve for cement consumption, with respective annual gains of 2.4 percent, 1.7 percent and 1.4 percent.

“Public construction continues to receive the benefit of the 2018 federal budget that allowed for $20 billion in spending on roads, bridges, water, and rail projects over 2018 and 2019,” says Senior Vice President and Chief Economist Ed Sullivan. “These gains come in the context of increased challenges at the state level to manage deficits as entitlement spending growth continues at a strong pace.”

“The economy is now the longest economic expansion post-World War II history. Some of the pent-up demand zip that invigorates the initial stages of economic recovery are long past. As such, the economy is now more vulnerable to economic shocks,” he adds. “While PCA does not believe data suggests a recession is near, it does point to a gradually weakening economy.”