Saturday, September 18, 2010

Manufacturing Growth Will Continue to Outpace Overall Economy Says Industry Group

(Industry Week)

MAPI predicts 6% growth overall in 2010 and 5% in 2011

While the pace of recovery in the general economy has clearly slowed, the deceleration is less visible in the manufacturing sector, according to the Manufacturers Alliance/MAPI.

“Despite less consumer spending growth in the second quarter, there was nevertheless some employment growth and modest wage increases. Also, the prolonged downturn and sluggish recovery have created pent-up demand for some durable goods, including sales of motor vehicles and appliances,” said Daniel J. Meckstroth, Chief Economist for the MAPI. “The inventory swing is greatest in manufacturing; exports are predominantly manufactured and benefitted from the fast global trade bounce back; and business investment in equipment rebounded much faster than consumer spending, thus making the pace of the industrial recovery stronger than that in the general economy.” Read more here.