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Santo Domingo.-  For the first time during the construction sector’s recovery  process that began earlier in the year, after the economic crisis of 2008 and most of 2009, cement consumption begins to decline nationwide, said the country’s cement makers grouped in Adocem.

The cement makers’ figures show a fall in demand of around 12.9% in May, June and July, compared with the first months this year, “showing a possible cooling of the construction sector mainly from government spending on infrastructure works around the country, which have been the main promoter of the improvement undergone in the industry.”

In a statement Adocem said from May to July the daily average consumption was 10,500 tons, far from the 12,000 ton daily demand from January to April.

“The fact that cement demand grew above the expected in the economic cycle is explained by the recent electoral period during which increased public spending in infrastructure works is common, but tend to fall and return to the usual rate of spending after the process.

Adocem said the demand for public works (roads or other infrastructure) represent as much as 13% of its consumers market and the rest is spread among private and housing construction, where it expects positive figures for the rest of the year.

“The cement industry is partially compensating these months of fewer construction activity in the country with an increase in exports. In that manner, during this first half the sector has sold in third countries, essentially in the Caribbean area, around 600,000 metric tons of Portland cement,” the cement makers said.

They add that cement consumption is considered among the most representative indicators of the construction activity, “where the statistics for this period are an example of the decelerated growth which the industry has undergone in the last few years.”

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COMMENTS
16 comment(s)
Written by: JimHarrington This user is banned, 10 Aug 2010 10:32 AM
From: United States
Have these guys not figured it out yet. Leonel is getting no more loans.
You better get paid up front from now on.
Written by: MrSteve, 10 Aug 2010 10:48 AM
From: Dominican Republic
Are people finally starting to realise (2yrs later) that there is property crisis here and maybe shouldn't be building 1000 new apartments a week which nobody is in the market for.......?

Tip of the iceberg maybe?

Written by: juanb, 10 Aug 2010 11:16 AM
From: Dominican Republic
How can that be?

In this "very healthy economy" that LF and his stooges (you know who you are) are promoting, how is it possible that construction is down? Could it be that much of the construction that we have seen going on over the past few years remains empty, and consequently there is no need for more building.

For example: Here in Santiago there are two relatively new malls. One, at Las Colinas is three stories. The first floor is 3/4 full, the second floor is almost completely empty. COMPLETELY EMPTY. Third floor has a couple of tenants. This is after at least two years. Actually to be completely accurate there were more tenants, but they closed. THERE WERE NO CUSTOMERS.

Bella Terra Mall is shaping up to be a worse disaster. With the exception of the stores near the center walkway, most of the space is empty. Business is so bad that the none of the stores open on Sunday. Can you imagine?

But some clown will soon appear to tell us how good things are.
Written by: juanb, 10 Aug 2010 11:22 AM
From: Dominican Republic
How much of the "healthy economy" was based on construction? How much of it was based on the Cibao airport, which reported obscene profits? Profits which, by the way, were made possible by the outrageous departure taxes place on travelers by the gov't.

And if you want to know why the Church gives so much support to LF, read this:

http://contactomatinal.blogspot.c....-operandi-de-los-negocios-de.html
Written by: WalterPolo, 10 Aug 2010 11:41 AM
From: Dominican Republic, Puerto Plata
Yes, there is a decrease in demand for cement because the Dominican economy is not facing a crisis, actually reports a growth that should make the Guinness, and the debt/GNP ratio is within acceptable standards.

Legal definition of bankruptcy: owe more than $1000.00, liabilities exceed assets, and not to pay one's creditors when the bills become due. Extrapolate. We're broke and should be put in receivership. I hope the Administrator will get to sell all the villas, apartments, jeepetas and seize the bank accounts both domestic and foreign of those who caused this mess.

Oh, and the cement thing? Expect overstocks and price drops.

Written by: gmiller261, 10 Aug 2010 12:07 PM
From: United States
juanb, nice retort !

Written by: Escott, 10 Aug 2010 12:48 PM
From: Dominican Republic, Cabrera and Sosua a 2 days a month for payday
Yet little richard is going to pipe in about the complainers here and put the Hippo with Hair back on his pedestal.
Written by: juanb, 10 Aug 2010 1:57 PM
From: Dominican Republic
Written by: Ricardolito, 6 Aug 2010 7:59 PM
From: Dominican Republic, Boca de Chavon
not worth the effort to debate with those who can supply no evidence to support their statements ...just ranting the same thing every time .

Allow me to fill in for him. He must be otherwise occupied, probably in the Jewel Room, polishing LF's jewels.
Written by: jonbonz, 10 Aug 2010 4:10 PM
From: Dominican Republic, santo domingo
I remember being tarred and feathered for stating that a public works driven economic growth was a facade.
Written by: old_school_trinitario, 10 Aug 2010 4:33 PM
From: Dominican Republic, San Carlos, barrio de matatanes, aqui no invente
Don't worry cement " growers "

you'll get your high consumption back up once the haitian reconstruction money starts rolling in, just make sure you make leonel new taxes retroactive for when that development boom comes around.

Written by: old_school_trinitario, 10 Aug 2010 4:35 PM
From: Dominican Republic, San Carlos, barrio de matatanes, aqui no invente

lambonz

what's wrong with being " tarred and feathered "

my girlfriend do that to me all the time, specialmente cuando me doy un mamajuanazo.
Written by: jonbonz, 10 Aug 2010 4:38 PM
From: Dominican Republic, santo domingo
syruped and feathered is kinky tarred and feathered is perverted
Written by: Ricardolito, 10 Aug 2010 6:01 PM
From: Dominican Republic, vieja Santo Domingo
The first interesting thing in this article is the statement that public works only account for 13 % market ,,earlier the economic geniuses from Santiago had been saying that it was only the public works that were holding the economy together .
The second interesting statement is that the fall of 13% in cement sales did not equate to a similar fall in the economy,which by many accounts has grown well, which suggests that the economy base has widened and is now not so heavily reliant on the construction industry : It is what most of us here had been hoping for.
However we cannot ignore the monotonous bleats from those living in the north , when they constantly write that there are no jobs, no one in the shops, no guests in the hotel ..and it seems, from these accounts, that the north is holding the country back . I do not know what can be done but it seems a total remodeling of the tourist area in the north is essential as well as some entrepreneurial skills .
Written by: Ricardolito, 10 Aug 2010 6:05 PM
From: Dominican Republic, vieja Santo Domingo
But I was sure that this article would be deliberately misinterpreted without the moaners looking for the obvious explanation of why the economy is proceeding well at the same time as cement sales have declined.
Written by: juanb, 10 Aug 2010 6:17 PM
From: Dominican Republic
Finished shining LF's jewels did you?


not worth the effort to debate with those who can supply no evidence to support their statements ...just ranting the same thing every time .
Written by: ElFactor, 10 Aug 2010 7:25 PM
From: United States
Deport all the Haitians ASAP. Their services are no longer needed...
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