PCA EXPECTS MORE CEMENT CONSUMPTION.
In its most recent economic forecast, the Portland Cement Association anticipates a 5% increase in consumption in 2010 over 2009 levels. The 3 million to 5 million metric ton gain in cement use will materialize during the second half of the year. A 13.3% jump is predicted for 2011, followed by an 18.7% increase in 2012.
"The 2010 recovery in cement consumption lays largely on expectations for public construction activity," says PCA Chief Economist Edward Sullivan. "Spending from the stimulus bill will more than double to $12 billion, and that spending is expected to reflect an increased share of major highway construction and bridge projects."
Although nonresidential sectors contribute increased cement consumption in 2010, consumption accrued to commercial building will decline 29% on top of a 38-year low reached in 2009. The residential sector should see modest growth during 2010 - something that has not materialized since 2005.
"The economy is recovering and improving its core fundamentals. However, recovery for the construction markets will be slowed by the continuation of tight lending conditions, high foreclosure rates, and weak job markets," Sullivan says.
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|Title Annotation:||Portland Cement Association|
|Article Type:||Brief article|
|Date:||Jun 1, 2010|
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