STRONGER SENTIMENT, HIGHER INTEREST RATES, JANUARY 2017
The election of a president always represents at least the potential that policies and procedures established during the previous administration may change – to a greater or lesser degree. With change, uncertainty materializes. Economic activity, particularly large scale consumer spending or business investment decisions, typically do not perform well in the context of uncertainty of what the future holds.
Given the lack of Trump policy specifics, controversial initiatives, and few clues regarding policy priorities, larger than expected adverse consumer and business sentiment was expected to confront the the economy during 2017. This adverse sentiment was expected to result in slightly slower real GDP growth, construction activity and growth in cement consumption –reflected in PCA’s fall forecast.