According to the most recent forecast from the Economic Research department at Portland Cement Association (PCA), although cement consumption is not projected to decline, only marginal gains are expected. The fall forecast, presented by chief economist Ed Sullivan, revises cement consumption growth for 2006 to an increase of .6 percent. An even more modest growth rate of .3 percent is expected in 2007 with more robust trends returning in 2008 when cement consumption is projected to increase by 2.7 percent.

“Our forecast projects that cement intensities will increase by 2 percent in 2007, fueled by a favorable relative price position versus asphalt and steel, as well as a shift towards higher cement usage construction projects,” Sullivan said. Additionally, the PCA fall forecast does not expect the sharp decline in housing to continue at the current rate. Sullivan says the recent downward change in the housing market was driven by the departure of speculators from the market. Their exit will actually help introduce a correction to housing prices and improve affordability for the average homebuyer. Source: www.cement.org