Despite volatility in equity markets and concerns about global growth conditions, “the fundamentals in the United States are sound and should support sustained growth in construction activity,” according to Portland Cement Association Chief Economist and Group Vice President Edward Sullivan.
The PCA’s market intelligence group expects construction activity will grow 4.8 percent this year and even stronger growth is expected for next year. Cement consumption is expected to grow 5 percent this year and 6.5 percent in 2016. Each of the three key sectors on cement consumption – residential, nonresidential and public construction – are experiencing growth. Typically, when all three sectors are positive strong volume gains materialize, noted the association.
The U.S. economy is characterized by steady and strong gains in net job creation, low inflation and interest rates, and improving business and consumer confidence, all of which paints an optimistic near term outlook. While some sectors have been hurt by a strong dollar and low oil prices, these factors hold the potential of a growth dividend later in the forecast horizon, according to PCA.