(Industry Week)
For 2011 MAPI sees 4.7% increase
The U.S. economy has decelerated to a “slow growth mode,” primarily driven by consumers continuing to deleverage and rediscovering the need for thrift, according to a new report from The Manufacturers Alliance/MAPI.
The group predicts that GDP will expand by 2.9% in 2010, followed by 2.6% growth in 2011.
“There is a somewhat bleaker outlook amid weaker economic data and it clearly indicates a slow growth mode,” said Daniel J. Meckstroth, Manufacturers Alliance/MAPI Chief Economist. “For instance, the numbers for June retail trade, inventories, and foreign trade have all come in weaker than the Bureau of Economic Analysis had estimated in the preliminary estimate of second quarter GDP growth. The homeowners’ tax credit has expired. Consumers are not spending as much. They are saving more and repaying debt, which is good for the long run but not the near term. The inventory swing is over and the benefits of the stimulus have basically run their course.”
There remain, however, positive economic signs, and the manufacturing sector should continue to hold its own. Read more here.
