Cement Shipments and Ready Mix Yardage for May 2017 Contract
Data recently released by the USGS for cement shipments show a sharp decline in May 2017 in comparison to May 2016. Tonnage contacted by 10.15% versus the same period in 2016. Shipments to the state have now declined for 2 consecutive months. We have anticipated the decline for several months as a result of the near daily rain this summer, and the data is now supporting our forecast. In comparison to April 2017 shipments, May dipped by nearly 4%.
Translating the cement tonnage to ready mix volume, an estimated 354,141 cubic yards of concrete was placed during the month. During the first five months of 2017, cement shipments and yardage are statically level with 2016 totals.
Residential Building Permits Slip in June
Data released by the University of Alabama show single family building permits issued across the state in June slipped by nearly 9% over May. Lee County and Muscle Shoals were the lone bright spots in a sea of red numbers across the state. While the drop is troubling, permits issued for June 2017 were 14% above the same period in 2016. Birmingham, Tuscaloosa, and Mobile all saw significantly more permits issued in June 2017 compared to 2016. The housing market index released for August 2017 was a 68 out of 100. The index polls home builders on how they feel about the market. The HMI for homebuilders in the South was a 70 for August.
Click here to view the data: Trendlines Newsletter August 2017