SOURCE: ACA: August 18, 2026
US cement demand is expected to return to growth in 2027 before accelerating the following year as construction activity recovers, according to the latest economic forecast from the American Cement Association (ACA).
The ACA’s Summer Economic Forecast predicts cement volumes will increase 0.4 per cent in 2027, led by an emerging recovery in single-family construction, before growth strengthens to 2.6 per cent in 2028 as activity improves across all three construction sectors covered by the forecast.
In the shorter term, the association expects elevated inflation and interest rates to continue weighing on construction throughout 2026. The ACA attributed part of the economic uncertainty to the timeline of the Iran War, with higher costs expected to continue affecting construction projects.
The association expects uncertainty to ease during 2027, with the US Federal Reserve forecast to cut interest rates once as inflation moderates. While the cut is not expected to significantly affect the year’s construction season, the ACA expects it to coincide with the beginning of a recovery in cement volumes.
Data centre construction is emerging as a significant source of cement demand. The sector now accounts for 55 per cent of US office construction spending, compared with 40 per cent in 2025.
The ACA has consequently upgraded its outlook for data centre construction and expects the sector’s expansion to consume between 625,000 and 725,000 tonnes of cement annually from 2026 to 2028.
American Cement Association senior director of economic policy and analytics Brian Schmidt said parts of the US economy had remained resilient despite higher borrowing costs and inflation.
“Despite high inflation and elevated interest rates, consumer spending and the labour market continue to show resilience,” he said.
“What’s in question is whether a fragile economy can stay the course. The stock market has been positive overall for top-earning households this year, but there are many downside risks to consider, such as rising delinquencies and defaults among the lower end of the income spectrum.”
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