What is in this article?:
- Moderate Growth Likely Pending 'Fiscal Cliff' Compromise
- Hiring Will Increase
Manufacturing is expected to see a net increase in hiring, with the sector expected to add 163,000 jobs in 2013.
While acknowledging that major issues still need to be addressed, the Manufacturers Alliance for Productivity and innovation (MAPI) is sounding upbeat enough to predict that "the U.S. economy could be in a transition from sluggish growth to a longer period of moderate growth, according to a new report."
However this does presume that United States is able to get its "fiscal house in some semblance of order."
The group expects GDP will expand by 1.8% in 2013 and by 2.8% in 2014.
The forecast includes a five-year window where it envisions GDP growth averaging 2.7% form 2013-2017, a subpar expansion following a deep recession, and with a high of 3.3% growth in 2015.
MAPI believes final 2012 GDP growth will be 2.1% and manufacturing production will be 4.2%.
"Much of the outlook is predicated on political dynamics," noted Daniel J. Meckstroth, MAPI chief economist. "In order for the transition to moderate growth to occur successfully, there needs to be compromise on the ‘fiscal cliff’ issues, agreement on raising the debt ceiling early in 2013, and establishing a 'grand compromise' plan for meaningful long-term federal deficit reduction that phases in over several years."
Manufacturing production is expected to show growth of 2% in 2013 and 3.2% in 2014.
The 2013 figure is down from 2.3% and the 2014 estimate is down from 3.3% from the August forecast.