US fiscal gridlock dampens industrial spending, construction: RPM CEO

09 October 2013 16:27  [Source: ICIS news]

HOUSTON (ICIS)--The US fiscal gridlock and government shutdown are dampening industrial capital spending and may slow commercial construction activity, the CEO of US-based coatings, sealants and building materials firm RPM International said on Wednesday.

Dysfunction in Washington and an ever-growing regulatory environment is putting a damper on industrial capital spending, and it even seems to be slowing down what has been a strengthening in commercial construction activity in North America,” CEO Frank Sullivan told analysts during RPM’s fiscal 2014 Q1 earnings call.

“We are cautious with regards to the uncertainties surrounding the political gridlock in Washington, as well as US Federal Reserve policy and its impact on global foreign exchange markets," he added.

"The consequences of this [gridlock] going on for months and months and months would be challenging for our industrial businesses and our North American construction businesses, as it relates to generating solid growth," he said.

“Hopefully these political issues impacting business investment and risk-taking will be temporary, instead of building into an even greater challenge,” Sullivan said.

Paul Hodges studies key influences shaping the chemical industry in his Chemicals and the Economy Blog.

By: Stefan Baumgarten
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