With the first half of 2012 experiencing favorable weather conditions, gains in residential and nonresidential construction activity, and robust gains in cement intensities, the new Portland Cement Association forecast nearly doubles the expected increase in cement consumption for the year. PCA revised its spring forecast upward, anticipating a 6.9 percent increase in 2012 from 2011 levels, followed by a 5.8 percent gain in 2013, and a double-digit increase of 10.9 percent in 2014.

The forecast points to both changes in construction activity and cement intensity as the key contributors to cement consumption growth. Cement intensity is the amount of cement used per real dollar of construction activity. Because cement usage is greatest at the early stages of a construction project, PCA estimates the drop in construction starts were responsible for roughly 75 percent of the cement declines during the recession. However, the report does caution that uncertainty will characterize the near-term economic outlook and inhibit stronger growth conditions from materializing.