Portland Cement Association's Summer Forecast Report has revised growth targets for powder consumption in 2006. The outlook expects consumption this year to reach 129.6 million metric tons, an increase of 2.3%, compared to 2005 levels, followed by a 1.2% increase in 2007. The spring forecast had projected 3.5% growth in 2006.

Slower economic growth is expected as higher interest rates, oil prices, and inflation slow consumer spending. These forces are expected to result in a harsh decline in residential and slow the recovery in nonresidential construction activity in 2006 and 2007. Slower job growth also could contribute to a more cautious approach to public spending.