The Portland Cement Association's spring economic forecast is expecting cement consumption, measured by construction activity levels and how much cement is used per project, to nearly double in 2014 despite the industry's current lethargy. The group's economists believe that the recent construction slowdown is largely attributable to inclement weather, and that improved conditions will ramp up market growth.

The spring economic forecast from the Portland Cement Association (PCA) predicts a 7.9 percent increase in cement consumption for 2014, almost double the 4.5 increase recorded in 2013. The group also expects at least 10 percent growth in 2015 and 2016, according to a May 13 report.

"There is considerable evidence that the economy's growth path has softened during the past several months," PCA chief economist and group vice president Edward Sullivan said. "But we believe that the underlying economic fundamentals are stronger than the data suggest."

The principal cause for recent economic weakness, according to Sullivan, is the unusually harsh weather conditions that befell the U.S. at the end of 2013. Real GDP fell from 4.1 percent in the third quarter of 2013 to 2.6 percent in the fourth quarter, and preliminary first quarter estimates peg growth at a meager 0.1 percent.

"Weather conditions had an obvious impact on cement consumption – limiting construction and concrete use. The northern states and much of the east coast were hit hard, with year-over-year losses of as much as 25 percent," Sullivan said. "However, despite this drag, nation-wide cement recorded gains. Through the first quarter, cement consumption increased 4.5 percent compared to the same period in 2013."

The PCA believes that underlying fundamentals of the market, including resilient labor markets, increased consumer wealth, a low consumer debt to household income ratio, growing corporate profits and pent-up housing demand will lead to an overall economic expansion that will push real GDP to 2.8 percent growth in 2014 and 3 percent growth the subsequent two years.