THINGS WE WILL SEE IN THE 2nd Q OF 2022:
USA, CANADA, and MEXICO are forecast to see between 3.5% & 4.4% GDP growth in 2022.
The USA has pledged to the European Union that it will supply at least 15 billion cubic meters or more of LNG this year, which should be good news for the US LNG industry.
Construction-related materials, such as copper (cable/pipe), structural steel, rebar, piping (PVC, CS & SS), lumber, and plywood, are rising once again in the last couple of weeks relating to the Russian/Ukraine war.
Is $5, $6, or $7 a gallon of gasoline on the cards for US motorists in the next month or two? Looks like it. In the US, as the warmer summer months arrive, there will be an increased demand for gasoline as families go on vacation. Look for European energy (oil/natural gas/electricity) prices to increase dramatically in the coming months, and the recent ban by the USA on imports of Russian Oil and Gas is bound to increase gasoline prices in the USA.
Some good news, it appears there will be more infrastructure-related projects in the US in 2022.
Unfortunately, the USA has seen more than 900,000- related deaths from the COVID pandemic.
Escalation in the USA is more than 8%, Canada is seeing an 18 year high at close to 5%, and Mexico is seeing 7%—a 20 year high. This could be a problem in 2022.
The Canadian and Mexican economies and construction sectors could be severely impacted by the ongoing war in Ukraine. It is difficult to forecast the long-term impact on both these economies.