Manufacturing report online
By Staff -- Plant Engineering, 3/1/2006
The Manufacturers Alliance/MAPI Quarterly Economic Forecast is now available at www.mapi.net shows a slowing of the U.S. economy during the next two years, but predicts a solid performance from the manufacturing sector.
Inflation-adjusted gross domestic product growth will be 3.2% in 2006 and 2.8% in 2007, revised down only slightly from the November 2005 projections of 3.3% and 2.9%, respectively. Overall U.S. GDP growth in 2005 was 3.5%.
"The surprisingly low 1.1% GDP growth in fourth quarter 2005 was an aberration resulting, in part, from the hurricanes and automobile sales incentives," said Daniel J. Meckstroth, Manufacturers Alliance/MAPI Chief Economist. "Interest rates are creeping up, energy prices remain high, the housing bubble is deflating, and there is not much slack left in the labor market. Business activity is expected to grow at a moderate but slower rate in 2006 and in 2007."
