Robust Construction Activity Unlikely Until 2005; Portland Cement Association Releases Construction and Cement Forecast 12/18/2003
From: Ryan Puckett of the Portland Cement Association, 847-972-9136 or rpuckett@cement.org; http://www.cement.org/newsroom SKOKIE, Ill., Dec. 18 -- The U.S. economy is set to move into high gear in 2004 according to the latest economic forecast from the Portland Cement Association (PCA). The optimistic outlook arrives courtesy of recent improvements in U.S. labor markets; however, PCA does not expect robust construction activity to arrive until 2005. Chief economist Edward Sullivan explained, "The seemingly contradictory outlook is based on the prospects of cooling single-family construction under the weight of rising interest rates, a delayed and muted improvement in commercial construction activity, and a public construction sector still coping with state-level fiscal crises." PCA reported the emerging economic recovery will create jobs, escalate wage gains, and lead to stronger capital gains. Combined, these factors will strengthen states' tax base, resulting in a gradual easing of fiscal stress. PCA projects 2.7 to 3.0 percent growth in cement consumption for 2005-2008. View the complete new release including residential, nonresidential, and public construction outlooks at http://www.cement.org/newsroom/fallforecast20031218.asp ------ About the Portland Cement Association -- Based in Skokie, Ill., the Portland Cement Association represents cement companies in the United States and Canada. It conducts market development, engineering, research, education, and public affairs programs. |