The U.S. economy is set to move into high gear in 2004 according to the latest economic forecast from the Portland Cement Association. The optimistic outlook arrives courtesy of recent improvements in U.S. labor markets; however, the Portland Cement Association does not expect robust construction activity to arrive until 2005.
"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," said Chief Economist Edward Sullivan.
PCA reports 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% growth in cement consumption for 2005-08.
You can view the complete release including residential, nonresidential and public construction outlooks at www.cement.org/newsroom/fallforecast20031218.asp.
