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Materials market reports improved in March offsetting the February declines. But adjusting for the current high inflation in the construction materials market results in a small 1st quarter drop in real sales and a cutback in real production to avoid accumulating unwanted inventory. Inflation adjusted inventory fell marginally but manufacturers’ 1.37 inventory/sales ratio remains stubbornly above the target level of about 1.20-1.30. There will be no significant gain in materials production until materials sales post several strong months of inflation adjusted sales gains. Production gains will begin by midyear and progressively strengthen.

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