Data recently released by the United States Geological Service shows 121,502 tons of cement were shipped to the state during October 2020. Cement shipments to the state grew by 10.8% over the same period in 2019. After contracting for two consecutive months, the state experienced much needed growth in October.
Looking to ready mix volumes, we estimate 449,922 cubic yards of concrete were placed during the month. The volume represents the high-water mark for 2020, surpassing the previous high from June. The tonnage also marks the fifth highest total since we begin tracking the data in January 2014.
Examining the national construction indexes, The Home Builder Sentiment for January in the South currently stands at 82. Anything above 50 forecast a growth in the homebuilding market. The figure represents a 7% contraction from the record 90 in November. Considering the ongoing COVID19 crisis, homebuilder sentiment remains historically high. As states begin to reopen the economy, we anticipate residential construction to remain a bright spot. The index has seen record recovery since dropping to 34 in April 2020. The AIA billing index for the month of December stands at 42.6. An index below 50 signifies a contraction in the market.