Robust Construction Unlikely Until 2005

The Portland Cement Association (PCA), based in Skolie, Ill., predicts the U.S. economy will move in high gear in 2004, based on recent improvements in the U.S. labor markets. However, the PCA does not expect ?EUR??,,????'??robust construction activity?EUR??,,????'?? until 2005.

Edward Sullivan, chief economist for the PCA, explains: ?EUR??,,????'??The seemingly contradictory outlook is based on the prospects of cooling single-family construction under the weight of rising interest rates, a delayed and muted improvement in commercial construction activity, and a public construction sector still coping with state-level fiscal crises.?EUR??,,????'??

PCA believes the emerging economic recovery will create jobs, escalate wage gains, and lead to stronger capital gains. These factors will strengthen the tax base of states and ease fiscal stress. PCA projects 2.7 to 3 percent growth in cement consumption for 2005 through 2008.