Portland Cement Association Economic Research released the Summer 2004 U.S. Cement & Construction Forecast in early August, which adjusted cement consumption for 2004 to a 3.6% increase over 2003 figures. Earlier this year, PCA forecast a 1.9% increase in 2004, but demand, particularly in the residential sector, has been overwhelmingly strong.

For the first five months of 2004, cement consumption is reflecting a 9.3% increase, but this pace cannot be sustained, according to PCA, which continues to predict a weaker second half in construction. The revised forecast also reflects increased cement intensity estimates. This recalibration reflects an attempt to sharpen cement projections with the accuracy of PCA's economic and construction activity assessments.