The Slow Dig-Out Continues: Modest Growth Predicted Through '15
Increasing income and consumption in the U.S. will spur moderate growth in manufacturing through 2015. That's the outlook forecast by the Manufacturers Alliance for Productivity and Innovation in its fourth-quarter economic report issued today.
In its report, MAPI predicts that inflation-adjusted GDP will expand 2.6% in 2014 and 3.2% in 2015. The alliance has adjusted both of those forecast figures down slightly—by 0.2% each—since its last quarterly report in September.
Manufacturing production is expected to outpace the rest of the economy; production will grow 3.1% in 2014 and 4.1% in 2015, according to MAPI.
"This is reasonably good forecast," MAPI Chief Economist Daniel Meckstroth said. "The worst is over, and we'll accelerate from here through 2016."
He cautioned, however, that "there will be a speed limit moving ahead" and "we won't see the 4% rate of growth of the past."
Durable Goods to Drive Growth
Meckstroth said the main economic drivers will be on the consumer side, particularly in durable goods. He added that housing will grow due to pent-up demand, leading to increased demand for appliances and throughout the housing supply chain; and automobile production will decelerate to a rate of moderate growth but will still advance.
Additional details from MAPI's quarterly report:
About the Author
Pete Fehrenbach
Pete Fehrenbach, Associate Editor
Focus: Workforce | Chemical & Energy Industries | IW Manufacturing Hall of Fame
Follow Pete on Twitter: @PFehrenbachIW
Associate editor Pete Fehrenbach covers strategies and best practices in manufacturing workforce, delivering information about compensation strategies, education and training, employee engagement and retention, and teamwork. He writes a blog about workforce issue called Team Play.
Pete also provides news and analysis about successful companies in the chemical and energy industries, including oil and gas, renewable and alternative.
In addition, Pete coordinates the IndustryWeek Manufacturing Hall of Fame, IW’s annual tribute to the most influential executives and thought leaders in U.S. manufacturing history.