SKOKIE, Ill., Nov. 30, 2015 /PRNewswire/ -- Cement consumption in the United States will continue to grow, albeit at a slower pace than predicted at the beginning of the year according to a new report from the Portland Cement Association (PCA).
The United States' cement market is expected to increase by 3.5 percent in 2015, followed by larger rates of growth in 2016 and 2017, 5 percent and 5.7 percent, respectively.
"A slowdown in cement intensity is a significant contributor to the revised forecast," said Edward J. Sullivan, chief economist and group vice president at PCA. "The main indicators pointing to lower intensity levels are uneven regional construction activity, a slowdown in the number of starts, and the increase use of supplementary cementitious materials in concrete."
Cement intensities refers to the tons of cement per dollar of construction activity.
In addition, lower oil prices have significantly reduced construction activity in energy-dependent areas such as Texas and North Dakota.
Going forward, Sullivan stated that the underlying economic fundamentals are still strong, as reflected in the labor market. Sustained gains in monthly job creation in excess of 225,000 net new jobs monthly, in the context of sub-six percent unemployment translates into more consumer spending power, stronger state and local tax receipts, all leading to stronger construction spending in 2016.
Based in Washington, D.C., with offices in Skokie, Illinois, the Portland Cement Association represents cement companies in the United States. It conducts market development, engineering, research, education, and public affairs programs. More information on PCA programs is available at www.cement.org.
SOURCE Portland Cement Association