Though manufacturing industrial production expanded at a 0.9% annual rate in first quarter 2007, the Manufacturers Alliance/MAPI Quarterly Industrial Outlook forecast envisions an improved 3% growth rate in the second quarter. For the year as a whole, though, the report predicts that manufacturing production growth will decelerate from the 4.7% recorded in 2006 to 2.1% growth in 2007, before rebounding to 3.3% growth in 2008.
"The manufacturing inventory correction is over, the inexplicable decline in exports has passed, the January 1, 2007, EPA diesel engine emissions regulation is in effect, and the worst of the housing collapse has occurred," said Daniel J. Meckstroth, Ph.D., Manufacturers Alliance/MAPI chief economist. "As long as the general economic expansion continues, conditions in manufacturing will improve."
A number of industries showed strong double-digit year-over-year growth, including communications equipment (20%); navigation, measuring, electromedical, and control instruments (17%); aerospace products and parts (14%); and industrial machinery (14%).
In the equipment industry, ventilation, heating, air conditioning, and commercial refrigeration equipment declined by 11%.
Aerospace products and parts will see double-digit growth (14%) in both 2007 and 2008.