The 2004 construction market will be characterized by a mixture of market sectors facing both decline and recovery according to the annual Spring Forecast offered by Portland Cement Association Chief Economist Ed Sullivan. He expects only a 2.0% net increase in overall construction this year, with larger increases anticipated for 2005.

Sullivan expects U.S. portland cement consumption to reach 109.5 million tons in 2004, up 1.9% from last year. In 2005, continued strength should translate into a gain of 2.1% to 111.79 million tons. Among the highlights of his forecast:

• Higher interest rates will cool housing starts, but factors such as larger homes will keep residential cement use high.

• Nonresidential building will become a growth leader.

• Public works also is a strong sector, with the prospects of greater highway funding and general economic recovery.

• Rising steel prices will make concrete more competitive in some markets.