Pca Tracks 2007-09 Powder Consumption Drop, Rebound

PCA’s current forecast notes that cement consumption, burdened by the housing market’s hard correction, has weakened in 2007 and is trending toward a 4.4 percent drop against 2006 levels, but rebounding with a 2.2 percent gain next year

Source: Portland Cement Association, Skokie, Ill.
PCA’s current forecast notes that cement consumption, burdened by the housing market’s hard correction, has weakened in 2007 and is trending toward a 4.4 percent drop against 2006 levels, but rebounding with a 2.2 percent gain next year.

“Sustained growth in cement consumption normally occurs when all three sectors of construction — residential, nonresidential, and public — are thriving,” says PCA Chief Economist Ed Sullivan. “With the current gain trends in nonresidential and public sectors, as well as most regional residential markets expected back on track by 2009, [when] we anticipate the onset of a period of continued growth.”

Additionally, PCA’s forecast adjusts its outlook regarding cement intensities, indicating the amount of powder used per real dollar of construction activity. Originally expected to increase and cushion this year’s lower powder shipments, cement intensities have declined for 10 straight months, a trend that Sullivan attributes to weather conditions and lower construction activities in key regions.