Source: Portland Cement Association

The Portland Cement Association expects cement consumption to increase by slightly more than 5 percent during 2010, according to a recent report issued by Economic Research. Preliminary results for 2009 cement consumption indicate a 26.9 percent decline. PCA’s anticipated increase in 2010 cement consumption is compared against extremely weak 2009 levels and represents a meager 3.5 million metric tons. All 2010 gains are predicted to materialize in the second half of the year. The forecast expects year-over-year declines during the first half of this year.

Data released since the October forecast indicates that economic conditions may be faring slightly better than PCA expected. For example, the labor market’s performance in recent months has outperformed PCA’s fall projections. Additionally, ARRA stimulus spending is accelerating at a faster pace than predicted, and more cement-intensive ARRA projects are likely to materialize in 2010, according to PCA Chief Economist Edward Sullivan.