April Concrete Numbers Fall
Data recently released by the United States Geological Service shows 138,815 tons of cement were shipped to the state during the month of April 2022. Cement shipments contracted by 8.3% over the same month in 2021. Shipments dropped a similar amount from the red-hot month of March. Historically, the April total is the 4th highest monthly shipments since Trendlines began tracking the data in 2014. We expect a continued contraction of cement and concrete shipments due to the tight cement supply and a slowdown in construction from the Federal Reserve’s interest rate hikes.
Looking to ready mix volumes, we estimate 514,031 cubic yards of concrete were placed during the month.
The NAHB housing market index dropped from 76 to 75 for the month of June in the South. The index has seen a 15% drop from January’s 89 number. The AIA billing index dropped from 56.5 in April to 53.5 in May. The index is considered a good barometer of upcoming commercial construction. A number over 50 is considered positive.