Cement consumption this year is expected to reach 129.6 million tons, an increase of 2.3 percent compared to 2005 levels, according to information from the Portland Cement Association.
PCA's spring forecast had projected a 3.5 percent growth rate in 2006. The predictions would extend a three-year period of continual growth. Additional growth is forecasted for 2007, with a 1.2 percent consumption increase.
"Higher interest rates, oil prices, and inflation will slow consumer spending," Edward Sullivan, PCA chief economist said. "These forces will result in a harsh decline in residential building and slow the recovery in nonresidential construction activity in 2006 and 2007."
Additionally, the PCA summer forecast reports that the tight market conditions seen during the past two years have been dramatically reduced.