Cement sales rise 5.4% in Q3

CEMENT sales in the third quarter rose 5.4% by volume, following an increase in infrastructure spending and improved private-sector confidence in the government.

The Cement Manufacturers Association of the Philippines (CEMAP) said third-quarter sales totaled 6.72 million tons from 6.37 million a year earlier.

On a year-to-date basis, sales were up 10.1% to 20.12 million tons in the first nine months.

“The third quarter increase was not as large for two main reasons,” CEMAP President Ernesto M. Ordoñez said in a text message to reporters, noting unfavorable weather that hampered construction activity as well heightened activity in anticipation of the presidential elections in 2015, which created a base effect that was difficult to overcome.

Citing data from the Philippine Atmospheric Geophysical and Astronomical Services Administration (PAGASA), Mr. Ordoñez said rainfall in the third quarter of 2016 surpassed its year-earlier level.

“According to PAGASA, El Niño last year caused below-normal rainfall which is conducive to construction, but this year rainfall is… above normal.”

He noted a general sense of bullishness among companies engaged in the construction industry due to strong signals from the government on infrastructure spending.

Plans are for public infrastructure spending to increase 14% to P860.7 billion, equivalent to 5.4% of GDP under the P3.35-trillion 2017 national budget cleared by Congress.

According to report by Timetric’s Construction Intelligence Center (CIC) released in May, the construction industry was forecast to grow to $47.0 billion in 2020, driven largely by the residential and infrastructure markets. This suggests a compound annual growth rate (CAGR) of 9.22% for the industry. —