New Delhi, July 20 -- Overall government capital expenditure by the Centre, states and central public sector enterprises (CPSEs) increased 19 per cent year-on-year in April-May 2026, raising hopes of stronger cement demand in FY27 despite mixed demand trends and continued weakness in the housing sector, according to a report by Nuvama.

The report said the capex trajectory, which remained subdued during FY25 and FY26, has shown improvement in the first two months of FY27, supported by higher public spending across different levels of government.

It noted that central government capex rose 13 per cent year-on-year in April-May 2026, while state government capex increased 9 per cent during the same period. Capital expenditure by CPSEs, inc...